Prudential CRO: markets haven’t priced in tail risks
Risk USA: distribution of extreme outcomes “has gotten broader and wider”, says Nick Silitch
The tail risks posed by inflation and climate change are not being priced into the market because there is no consensus on how they will materialise, according to a senior risk manager.
“We can all say we should double the tail risk, but it must be an industry move toward these outcomes,” said Nick Silitch, Prudential’s chief risk officer, at the Risk USA conference earlier today (November 8). “We can look at our deterministic stress-testing and extreme events, but it’s hard to price these
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