Hello there! I am currently doing an MBA course about the financial crisis which is quite challenging. Today we were given a question about the topic: Long term capital management & the black swan.
The questions that need to be answered are the following: 1) Has a risk managers become a marketer in disguise? 2) Is risk management a predictive science or is it an art that has been misrepresented and marketed as a predictive science?
If you guys have any ideas, i would really appreciate your help! Thank you!:)
Risk management is a science. This specific science is based on deep learning of different principles of analysis. There is part of art because sometimes solutions can be also based on intuition decisions.