Riccardo Rebonato, global head of market risk and global head of quantitative research and quantitative analysis at the Royal Bank of Scotland and author of the prescient PLIGHT OF THE FORTUNE TELLERS: Why We Need to Manage Financial Risk Differently, discussed the weaknesses of mathematical finance models and their over reliance by quants as we’ve witnessed during the economic collapse last week on the very popular blog Econtalk.  Listen to it here. This lively chat provides an insight into the managing of risk by one of the industry’s top players.  

PLIGHT OF THE FORTUNE TELLERS was published in the autumn of 2007, well before the economic downturn.