Environmental Consistency Confidence: Scientific Method In Financial Risk Management
Risk Management In Finance: Six Sigma And Other Next-Generation Techniques, Chapter 22, Anthony Tarantino & Deborah Cernauskas (eds), John Wiley & Sons (2009), pages 273-288
14 Pages Posted: 12 Jan 2021
Date Written: September 1, 2008
The application of the scientific paradigm to business operations transformed management thinking in the early part of the 20th century. A plethora of management theorizing since often obscures the simplicity at the core of the scientific paradigm. One approach, Environmental Consistency Confidence, restores statistical correlation to its rightful place at the core of financial risk management. For financial services organisations statistical correlation integrates well with existing Key Risk Indicator (KRI) initiatives. Through Environmental Consistency Confidence, financial organisations understand the limits of their environmental comprehension.
Keywords: Risk Management, Environmental Consistency Confidence, Financial Services, Statistical Correlation
JEL Classification: G00, G32
Suggested Citation: Suggested Citation