Risk Management Has Lost Its Meaning

Send us Fan MailRisk management seems to have lost its meaning. After the 2008 financial crisis banks have started labeling every department as risk management in some way. While it would be great if every department understood the risks they create or manage to any company, the over use seems to have diminished its actual value and meaning. The skills required to work in "risk management" vary greatly depending on what area you want to work in. Someone who might work in model governance or a first line of defense risk manager might require a business degree and experience using Excel. Other jobs such as model developer or model validator might require a Masters or PhD along with experience in statistics, mathematics, and computer science. The easiest way to figure out where in risk management you might fit would be to look at job postings and see what skills are required.To make matters more confusing, the investing side views risk as VaR and ES. Don't get me wrong, there are some advanced firms out there with well developed risk departments and processes however there are a lot of firms with over simplified understanding of risk management as a big picture concept that should be applied to an entire firm.YOUTUBE Version:https://youtu.be/BVmUnn2gX08SUPPORT THE CHANNEL:Quant t-shirts, mugs, and hoodies:https://teespring.com/stores/fancy-quantConnect with me:https://www.linkedin.com/in/dimitri-biancohttps://twitter.com/DimitriBianco☕ Show Your SUPPORT and Buy Me a COFFEE ☕https://ko-fi.com/fancyquantSupport the show