Redefining “market” in risk


How financial models define “market” could be at the heart of how we define and understand risk. One is connected to the other. This is an idea of extreme importance for a society that not only pays an undue weight to monetary risk but also relies on the return and growth that accompanies calculated risk taking.

Though financial models have limited history, risk has traditionally been under judged and might never be completed understood. The reason we cannot really pin point the source of the problem is because markets evolve and what seemed to be risky yesterday is not that relevant today. Risk like many other social parameters is a moving target. Many risk parameters have moved from reverence to irreverence as they failed to pass the test of time.

For us the bigger issue is how financial models understand and define “market”. If this definition needs revision, we will find our answer to a better risk measure…

This article was written for Business Standard

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2 Responses to “Redefining “market” in risk”

  1. Pradeep says:


    Article not yet published in business standard

  2. Domnita says:

    The article is up Pradeep.

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