Living in a Stochastic World and Managing Complex Risks

Michel Dacorogna and Marie Kratz

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we review the concept of risk, its evolution in history and the big changes we experienced in the last 50 years. We conclude that peak risks are growing and the need for risk management is becoming a societal demand. Two phenomena are identified to render risks more complex, increasing interconnectedness of the world and faster time scale whereby actors have little time to adapt. We conclude in showing the complementary between qualitative and quantitative risk management.

Keywords: complexity; crisis; extreme risk; fertility; life expectancy; resilience; risk management; (industrial; financial) risk; scientific approach; societal demand; uncertainty; urbanization (search for similar items in EconPapers)
JEL-codes: A10 Y2 (search for similar items in EconPapers)
Date: 2015-07-25
New Economics Papers: this item is included in nep-ore and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Living in a Stochastic World and Managing Complex Risks (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:67402

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