Flatten the Curve

COVID-19 and Model Risk

‘All models are false; some models are useful.’* The COVID-19 pandemic has turned all of us into amateur epidemiologists. We follow obsessively the daily briefings of political leaders and public health experts, track the latest figures on hospital deaths and newly confirmed infections, and search desperately for any sign that the curve is flattening. In […]

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As Safe as Houses? Central Counterparties and Risk

In Britain, if you say that someone or something is ‘as safe as houses’, you mean that it is completely safe. But is this the case with Central Counterparties, which were designed to provide a level of security in taking on the risk between parties in financial transactions? In September 2018, a single Norwegian power […]

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