How is it possible to manage risk across a diverse conglomerate?
http://dilbert.com/… Examining the ‘Squandering’ of American Promise http://www.npr.org/… Citigroup Saw No Red Flags Even as It Made Bolder Bets http://www.nytimes.com/… What school of management could have provided guidance to financial conglomerate executives to calculate and manage risk? Financial Engineering is a relatively new discipline. It has components of artificial intelligence, advanced data models and computer simulated agents. A full scale market simulation isn’t possible. I developed what could be called computer simulated agents for Sears Roebuck Credit Division in 2001-2002. The theory and potential application is safe in academic settings, but very risky when real money is involved. It had reached a level of maturity by 2004. My Personal Credit Crisis http://www.nytimes.com/… Computational Finance http://en.wikipedia.org/… Computational Finance Research http://www.bracil.net/… Operational Research and Financial Engineering http://orfe.princeton.edu/ Best Pr
