Second-order derivative: Difference between revisions

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	The [[second-order derivative]], of function ƒ is a derivative of the [[first-order derivative]] of that function. So, for example, the warning light on a control panel, the [[RAG status]] indicator on a [[Middle management\|management]] [[PowerPoint]], or the numerical ''quantity'' of an item (completed ISDA [[negotiation]]s); reviewed legal [[netting opinion]]s) whose ''quality'' one doesn’t have the [[subject matter expert]]ise to assess.		The [[second-order derivative]], of function ƒ is a derivative of the [[first-order derivative]] of that function. So, for example, the warning light on a control panel, the [[RAG status]] indicator on a [[Middle management\|management]] [[PowerPoint]], or the numerical ''quantity'' of an item (completed ISDA [[negotiation]]s); reviewed legal [[netting opinion]]s) whose ''quality'' one doesn’t have the [[subject matter expert]]ise to assess.

	[[Operations]] people deal with ''actual'' risks; [[legal eagle]]s and fellow [[Controllers\|controller]] [[subject matter expert]]s deal with [[first-order derivative]]s of those actual risks — what the consequences are if the risk comes about — and [[middle management]] and [[internal audit]] deal with [[second-order derivative]]s of those ~~actual~~ risk: what the [[RAG status]] on the [[opco]] [[dashboard]] should look like if a [[NAV trigger]] is hit; whether the template [[confidentiality agreement]] as been reviewed within the six-month time limit arbitrarily prescribed by some policy for the review of standard form legal agreements.		[[Operations]] people deal with ''actual'' risks; [[legal eagle]]s and fellow [[Controllers\|controller]] [[subject matter expert]]s deal with ''[[first-order derivative]]s'' of those actual risks — what the consequences are if the risk comes about — and [[middle management]] and [[internal audit]] deal with ''[[second-order derivative]]s'', being derivatives of those [[first-order derivatives]] of the underlying risk: what the [[RAG status]] on the [[opco]] dashboard should look like if a [[NAV trigger]] is hit; whether the template [[confidentiality agreement]] as been reviewed within the six-month time limit arbitrarily prescribed by some policy for the review of standard form legal agreements — that kind of thing.