Blogs for tradeking

Visit TradeKing Blog

Peter Bernstein on Risk and Volatility

Posted on June 22, 2008

In an article for the New York Times, financial historian and consultant Peter Bernstein argues that there is a fundamental need for a broader understanding of risk management within the investment world. Any risk management system must confront a simple question: What happens if we're wrong? This seems simple enough - but plenty of investment banks and hedge funds never dealt with the question during the formation of the housing bubble: Risk management, then, should be a process of dealing with the consequences of being wrong. Sometimes, these consequences are minimal encountering ra...

Original article link


volatility