Friday, 30 August, 2013 Leave a comment
Complexity is a measure of how much information a system “contains” and how much this information is structured. One could simply sum up the Shannon entropies of each variable and conclude that this is the total amount of information in a system. However, because variables can be correlated, they give rise to structure. Structure means the system can “do more” and, potentially, perform new functions. Structure is present everywhere in Nature.
The potential to track causality through identification of ‘Causal Relationships’ offers insight where an early warning can serve as a means to prevent a potentially major loss.
Invaluable insight for carriers of financial and insurance risks where the causal relationship between its own profitability and risk profile is apparent…so, WHY, if loss prevention is achievable, are those charged with the responsibility to underwrite such risks, ‘content’ with conventional wisdom and a limited ‘risk horizon’ when:
AN INFORMATIONAL ADVANTAGE CAN CREATE A SIGNIFICANT COMPETITIVE ADVANTAGE!?
See on ontonix.blogspot.it
- What is Resilience? Why is it Important in a Turbulent Economy (fitforrandomness.wordpress.com)