The Critical Turn: The Renaissance of Practical Wisdom

Abstract

The moral of the story of the preceding discussion in Part I could well be that quantitative approaches to assessing and managing (extreme and systemic) risk ought to be abandoned, which goes beyond the conclusions reached in Part I. One might argue in favor of reinventing finance (Shiller, 2012: xii) and that uncertainties, as contrasted with clearly measurable risks which are not to be expected (see Chapter 7, where “our [supposedly] best tools [might have] prove[d] to be our worst instruments”; Blyth, 2010: 453), require a broader, more forward-looking and strategy-oriented approach to risk management.