It is folly to believe that financial innovation which slices exposures into ever more thin slices and thence packages them up into different products to disperse them across a geographic and risk appetite disparate set of counterparties does any more than distribute that risk. It does not fundamentally diminish the rest, Risk is always with us; we either learn the language to describe it (mathematics) and go some way to approximating it or we are not actually in the risk business.
It is folly to believe that financial innovation which slices exposures into ever more thin slices and thence packages them up into different products to disperse them across a geographic and risk appetite disparate set of counterparties does any more than distribute that risk. It does not fundamentally diminish the rest, Risk is always with us; we either learn the language to describe it (mathematics) and go some way to approximating it or we are not actually in the risk business.
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