3 ms·
Risk management really is the unsung hero of the modern world. A good book on the topic is "Against the Gods: The Remarkable Story of Risk". The answer to the
by intrasight 4y ago
Risk management really is the unsung hero of the modern world. A good book on the topic is "Against the Gods: The Remarkable Story of Risk".
The answer to the question "why did a thriving capitalist economy emerge in Europe in the 17th century?" is simply "risk management". It was the intellectual leap that made it all possible.
- deleted 4y ago[deleted]
- chewz 4y ago> A good book on the topic is "Against the Gods: The Remarkable Story of Risk". I wouldn't recommend that book. I would rather recommend reading A Treatise on Probability by John Maynard Keynes... which is insightful and genius like most of his work. https://en.wikipedia.org/wiki/A_Treatise_on_Probability https://en.wikipedia.org/wiki/A_Treatise_on_Probability Some parts of Fooled by Randomness are also insightful (before Nassim Taleb became this weird, tin foil hat guy he is now)... https://en.wikipedia.org/wiki/Fooled_by_Randomness https://en.wikipedia.org/wiki/Fooled_by_Randomness As for capitalist economy - it is of course a matter of opinion but I would rather say that capitalist economy is more about rent seeking, externalising costs and taking crazy amounts of risk with moral hazard rather then about risk management... But perhaps it is because I am risk manager by trade and had seen too many insurance, banks and money managers from the inside... EDIT: Both books - as I have just realized - are saying more or less that probability and risks are real but rarely quantifiable. I guess that makes me a pessimist.
- wklm 4y agoI loved Fooled by randomness, could you recommend further readings in a similar vein?