Social Interfaces

 

*/By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc./*

*/Follow us on Twitter/* [1]

I have written before about the need for more consideration of design factors
in risk management.  This is something I am currently doing academic
research on in terms of trading systems.  It is admittedly not new research
for trading.  Major financial institutions spend a significant amount of
time optimizing how a trader receives and transmits information on their
trading screens. 

However, how much do we think about the social interface for risk management
systems?  How socially friendly (and socially usable) are risk management
reports?  How socially friendly and usable are most risk management
metrics?  What about the social friendliness of risk mathematics?  Do you
think the financial crisis of 2008 might have been averted if Gaussian
Copulas were a more socially accessible technique?


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