Tag Archives: NASA

‘Model Risk’ is Nothing New

Model-risk estimates embody a false belief that models can map reality

October 9, 2009  By Richard Rumelt 

Since the vivid failure of financial risk models in 2007-2008, regulators, auditors, IT professionals, and others have begun pressuring for estimates of “model risk.” Looking back, it is clear that financial engineers underestimated the risk of a crash in housing Full entry→