Holzer, Boris and Millo, Yuval (2004) From risks to second-order dangers in financial markets: unintended consequences of risk management systems. CARR Discussion Papers (DP 29). ESRC Centre for Analysis of Risk and Regulation, London, UK. ISBN 0753017962
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Abstract
The notion of risk is central to modern society, both as a productive and as a troublesome concept. On the one hand, risk refers to a situation of opportunity. Only those who undertake a risk, bear the uncertainties and face the potential adverse consequences, may gain the rewards. On the other hand, risk refers to fundamental uncertainty: at the time of risk-taking one cannot know for sure whether the opportunity concerned will be realised; in the worst case, the costs incurred might be greater than any benefit. Risk therefore increases the scope for both rational and seemingly irrational decisions: without the willingness to undertake a risk some opportunities may never be realised; the costs of an unsuccessful risky decision, however, may be intolerably high and may thus disqualify the whole enterprise in hindsight
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://www.lse.ac.uk/CARR |
| Additional Information: | © 2004 The Authors |
| Divisions: | Centre for Analysis of Risk & Regulation |
| Subjects: | H Social Sciences > HG Finance K Law > K Law (General) |
| Date Deposited: | 07 Jun 2011 16:33 |
| Last Modified: | 15 Sep 2023 22:58 |
| URI: | http://eprints.lse.ac.uk/id/eprint/36101 |
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