Journal of Economic Literature
Book Reviews
2026-09-01
Philipppe Jorion of University of California at Irvine reviews “Plight of the Fortune Tellers: Why We Need to Manage Financial Risk Differently” by Riccardo Rebonato,. The EconLit Abstract of the reviewed work begins “Explores how to revisit ideas about probability in financial risk management, focusing on the importance of decision making. Discusses thinking about risk; thinking about probabilities; making choices; what risk management is for; some of the changes that have occurred in the financial industry in the last few decades; looking beneath the surface--hidden problems; which type of probability matters in risk management; the promise of economic capital; and what we can do instead in financial risk management. Rebonato is the global head of market risk and global head of quantitative research and quantitative analysis with the Royal Bank of Scotland. Index.”