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

Abstract

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

Mainelli, Michael and Mainelli, Michael, Environmental Consistency Confidence: Scientific Method In Financial Risk Management (September 1, 2008). 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, Available at SSRN: https://ssrn.com/abstract=3719887

Michael Mainelli (Contact Author)

Z/Yen Group ( email )

41 Lothbury
London
United Kingdom

Gresham College ( email )

Barnard's Inn Hall
Holborn
London, EC1N 2HH
United Kingdom

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