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    Plight of the Fortune Tellers: Why We Need to Manage Financial Risk Differently
    Plight of the Fortune Tellers: Why We Need to Manage Financial Risk Differently
    Plight of the Fortune Tellers: Why We Need to Manage Financial Risk Differently
    Ebook401 pages6 hours

    Plight of the Fortune Tellers: Why We Need to Manage Financial Risk Differently

    By Riccardo Rebonato

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    About this ebook

    Today's top financial professionals have come to rely on ever-more sophisticated mathematics in their attempts to come to grips with financial risk. But this excessive reliance on quantitative precision is misleading--and puts everyone at risk. In Plight of the Fortune Tellers, Riccardo Rebonato forcefully argues that we must restore genuine decision making to our financial planning. Presenting a financial model that uses probability, experimental psychology, and decision theory, Rebonato challenges us to rethink the standard wisdom about risk management. He offers a radical yet surprisingly commonsense solution: managing risk comes down to real people making decisions under uncertainty.



    Plight of the Fortune Tellers is a must-read for anyone concerned about how today's financial markets are run. In a new preface, Rebonato explains how the ideas presented in this book fit into the context of the global financial crisis that followed its original publication. He argues that risk managers are still stuck in a probabilistic rut, and need to engage with the structural causes of real events.

    LanguageEnglish
    PublisherPrinceton University Press
    Release dateNov 8, 2010
    ISBN9781400836390
    Plight of the Fortune Tellers: Why We Need to Manage Financial Risk Differently
    Author

    Riccardo Rebonato

    Riccardo Rebonato is Head of Group Market Risk and Head of the Quantitative Research Centre (QUARC) for the Royal Bank of Scotland Group. He is also a Visiting Lecturer at Oxford University's Mathematical Institute, where he teaches for the MSC/Diploma in Mathematical Finance. His books include Interest-Rate Option Models and Volatility and Correlation in Option Pricing.

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