HKMA's Chan identifies inherent flaws in risk models
Norman Chan, the Hong Kong Monetary Authority's (HKMA) chief executive this week issued a stark warning against "too great a reliance" on financial models when assessing financial or systemic risks.
Chan told an audience at the Global Risk Forum on Tuesday that the predictive powers of such models are "inherently restricted by historical experience", and face "significant difficulty" when estimating the risks associated with new products or transmission channels.
The solution may not lie in the
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