Don’t blame luck when your models misfire –

John Kay is, merely, the latest authoritative voice to make points that appear to “fall on deaf ears”. We know they aren’t deaf but they just aren’t prepared to listen to anything that refers to “transparency” or otherwise threatens what has served them so well and that they control!

Can anyone else provide an alternative explanation as to WHY the following would not be a matter of historic record rather than a “plea”?

…We will succeed in managing financial risk better only when we come to recognise the limitations of formal modelling. Control of risk is almost entirely a matter of management competence, well-crafted incentives, robust structures and systems, and simplicity and transparency of design.

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