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    Understanding Risk Management and Compliance, What is different after Monday, April 22, 2013
    Unavailable
    Understanding Risk Management and Compliance, What is different after Monday, April 22, 2013
    Unavailable
    Understanding Risk Management and Compliance, What is different after Monday, April 22, 2013
    Ebook206 pages1 hour

    Understanding Risk Management and Compliance, What is different after Monday, April 22, 2013

    By George Lekatis

    ()

    Currently unavailable

    Currently unavailable

    About this ebook

    Dear Member,
    I really enjoyed this paper from the Financial Conduct Authority in UK with title:
    "Applying behavioural economics at the Financial Conduct Authority"
    WOW! Now I know what was missing from the old FSA!
    They deserved to die.
    I love behavioural economics.
    This is one of the few areas we can explain that everybody (outside the financial services industry of course) is too stupid or has lost his mind, so it is not likely to understand what we do.
    My summary of the paper: A fool and his money are soon parted.
    It is science, of course.
    And, it is a really excellent paper, and you should study it. It could become the manual for every expert witness in the financial services. All the good excuses are there.
    It this paper, one of the questions is: Why consumer choice in retail financial products and services is particularly prone to errors?
    Some answers:
    1. Many products are inherently complex for most people.
    {My understanding: Most people are too small, too poor, too stupid}.
    To add insult to the injury the paper continues:
    "Faced with complexity, consumers can simplify decisions in ways that lead to errors, such as focusing only on headline rates"
    2. Decisions may require assessing risk and uncertainty. People are generally bad (even terrible) intuitive statisticians and are prone to making systematic errors in decisions involving uncertainty.
    {My understanding: People are generally bad (even terrible) statisticians, ok, but can statistician predict the future using the "history repeats itself" assumption?}
    3. Some products permit little learning from past mistakes.
    {My understanding: Even when people can learn from past mistakes in the financial markets, we can always make different mistakes.}
    Read more (about how not to exploit continuously the fact that the others are stupid) at Number 2.
    Again, it is an excellent paper.

    LanguageEnglish
    PublisherGeorge Lekatis
    Release dateApr 24, 2013
    ISBN9781301156528
    Unavailable
    Understanding Risk Management and Compliance, What is different after Monday, April 22, 2013
    Author

    George Lekatis

    George Lekatis is the General Manager of Compliance LLC, a leading provider of risk and compliance training and executive coaching in 36 countries.

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