By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
Partner, RSD Solutions Inc.
Colin Powell – “Experts often
possess more data than judgment.”
Our current management world is
data driven. The era of big data is here
and it will continue to get even bigger (no pun intended). However, have you stopped to think about what
exactly data is? In essence, data is
history. Data is numerical recordings of
what happened. In many cases what
happened is relevant for what will be – history tends to repeat itself. I would argue however that for the most
valuable cases, that is cases in which humans need to make a decision, what
happened is not relevant for what might be.
Paradigm shifts – for example – give no respect whatsoever to history.
As
a risk manager in the era of the religion of data, your role is to decide for
what risks is the future a continuation of the past, and for what risks is the
future yet to be designed. It is not a
trivial task, and it is a task that cannot be done with data.
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