Comments on: Mitigating “Margin Call” risks http://blogs.reuters.com/financial-regulatory-forum/2011/10/26/mitigating-margin-call-risks/ Fri, 19 Apr 2013 00:29:31 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Harrisburger http://blogs.reuters.com/financial-regulatory-forum/2011/10/26/mitigating-margin-call-risks/comment-page-1/#comment-6656 Harrisburger Thu, 10 Nov 2011 14:43:30 +0000 http://blogs.reuters.com/financial-regulatory-forum/?p=8796#comment-6656 "All models are wrong - some are useful" Any attempt to improve on the poetry of George Box (or W.E. Deming?) is fraught with risk and tends to discredit the risk manager. One additional suggestion: It may be risky to lure readers with a movie-review expectation if you intend to abruptly turn preachy. This is considered bad form in some circles. “All models are wrong – some are useful” Any attempt to improve on the poetry of George Box (or W.E. Deming?) is fraught with risk and tends to discredit the risk manager.

One additional suggestion: It may be risky to lure readers with a movie-review expectation if you intend to abruptly turn preachy. This is considered bad form in some circles.

]]> By: jimbridgeman http://blogs.reuters.com/financial-regulatory-forum/2011/10/26/mitigating-margin-call-risks/comment-page-1/#comment-6617 jimbridgeman Wed, 09 Nov 2011 16:51:46 +0000 http://blogs.reuters.com/financial-regulatory-forum/?p=8796#comment-6617 Good points and well-focused. But don't overdo the implied criticism of "growth." One of the best indicators of impending failure or trauma at any institution is sluggish or negative growth. It is only "reckless growth" that is cause for alarm, but identifying "reckless" in the heat of the fray is the real trick, just as distinguishing legitimate whistle-blowing from ignorant disgruntlement is only easy ex post. Good points and well-focused. But don’t overdo the implied criticism of “growth.” One of the best indicators of impending failure or trauma at any institution is sluggish or negative growth. It is only “reckless growth” that is cause for alarm, but identifying “reckless” in the heat of the fray is the real trick, just as distinguishing legitimate whistle-blowing from ignorant disgruntlement is only easy ex post.

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