Crossing the chasm

Existing risk management information systems proved too fragmented and cumbersome to meet the requirements of decision-makers during the crisis. David Rowe argues that a major reappraisal is required

Myron Scholes recently spoke about a concept he calls “volatility time”.  By this he means how quickly decisions need to be made to be effective. His point is that when volatility is high, it shortens the clock time available to make a decision. In this environment, delay can make a correct decision moot if the resulting action is taken too late to avoid losses or other damage. In effect