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**LTCM: reliance on Black Scholes notwithstanding it's failure to manage tail events | **LTCM: reliance on Black Scholes notwithstanding it's failure to manage tail events | ||
**WireCard: BaFin not able to believe that this could be corporate fraud when "mendacious short-selling" by "locust" hedge funds - aided and abetted by, ahh, investigative FT journalists - fit the BaFin's regulatory world view and seemed a better story. | **WireCard: BaFin not able to believe that this could be corporate fraud when "mendacious short-selling" by "locust" hedge funds - aided and abetted by, ahh, investigative FT journalists - fit the BaFin's regulatory world view and seemed a better story. | ||
**Enron: mtm up front realisation of lifetime deal pnl | |||
*'''Sleepy backwater''': It’s a boring and unglamorous part of the operational network. No one’s taking any risks there: [[Barclays Programme Limit]], [[Excess margin]] return in [[Archegos]], [[Libor]], Kerviel, Abodolo. | *'''Sleepy backwater''': It’s a boring and unglamorous part of the operational network. No one’s taking any risks there: [[Barclays Programme Limit]], [[Excess margin]] return in [[Archegos]], [[Libor]], Kerviel, Abodolo. | ||
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:*Juniorisation: Specialisation/siloisation/jujniorisation of key risk personnel: miss emergent risks between functions, not understand bigger picture; not understand risks at all. Emphasis of form over substance: [[Playbook]] as a substitute for comprehension. | :*Juniorisation: Specialisation/siloisation/jujniorisation of key risk personnel: miss emergent risks between functions, not understand bigger picture; not understand risks at all. Emphasis of form over substance: [[Playbook]] as a substitute for comprehension. | ||
:*'''Misaligned incentives''': financial reporting as a profit centre (Enron) | :*'''Misaligned incentives''': financial reporting as a profit centre (Enron) | ||
==Well fancy seeing you here== | |||
*[[McKinsey]] and [[McKinsey]] alumni | |||
*[[Ayn Rand]] fanboys | |||
==Correlation risks== | ==Correlation risks== |