This article discusses the role of mathematical models in the financial industry, emphasising the need for their responsible use and management. Marcus Killick shares his concerns about the over-reliance on models and suggests steps to ensure their safer utilisation, such as requiring board members to understand and explain the models, avoiding complicated terminology, and considering the historical context of market performance. The article highlights the importance of transparency and warns against the blind faith in models’ predictions.
Read the article: Plastic, glue and black boxes
(Article first published in Intouch Magazine, 2009.)
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