Furthermore, this long-term return, high risk, engineering-lead venture, was financed by - wait for it - the City.
Graduates in recent years, for example, seem to have accepted far too readily the notion that clever financial engineering could somehow abolish risk and uncertainty, when it probably made things worse.
You could do this by engineering a permanent increase in the risk premium.
Derivatives and other tools of financial engineering can be used to manage risk better by hedging positions and transferring unwanted risk to a counterparty, which is what banks say they mostly use them for.
The boom in derivatives was one of those moments when financial engineering raced ahead of back offices and risk-management departments, leaving them struggling to value or account for their holdings.
Peter Bradford, a member of the U.S. Nuclear Regulatory Commission at the time of the Three Mile Island accident in Pennsylvania in 1979, said the accident exposes shortcomings in risk analysis as well as engineering.
The engineering and statistical tools exist, from probabilistic risk assessment (PRA) to meta-data analytics.
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Volcker did blast Wall Street for misusing risk management tools in their complex financial engineering of the last many years.
Worse, the implementation of social engineering through government gifts comes at the price of obedience and at the risk of oppression.
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They also want people with a good mix of industrial engineering knowledge and command of supply chains for efficiency, cost savings and risk reduction.
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Except that if Bankia has really been strengthened by this financial engineering, then there would have to be a very significant transfer of risk to the European Central Bank - and therefore, by implication, to its shareholders, or the other central banks and taxpayers of the eurozone.
Indeed, for big, high-value choices, that seems obvious: when Starbucks introduced its instant coffee, or when Applied Materials moved its manufacturing and engineering base to Asia, those decisions involved sizable amounts of resources and significant risk.
To conclude, an agreement concerning cooperative research and development in the field of earthquake engineering between the Building Research Institute (BRI) of Japan and the National Center for Seismic Risk Reduction (NCSRR) of Romania was signed.
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