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Interconnectivities and regulatory impact [48]

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Bullet points include: Ultimately, most risk management involves extrapolating behaviour into the future Extrapolation is inherently challenging Because we don’t know for sure whether the data we base our extrapolation on will be representative of the future Where along the following spectrum do risk management questions lie? ‘Knightian’ uncertainty Inherently difficult to quantify Real-life risk questions? Statistically analysable risk Theoretically easier to quantify Here or here

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