Articles for tag: catastrophic, consequences, cost, finance, history, impact, lessons, lives, probaility, risk, tail, tail risk

Fires in Los Angeles compels review of tail risk

The tranquillity of a sunny afternoon can quickly transform into a scene of chaos when a wildfire erupts, engulfing homes and livelihoods in its path. Recent events, such as the devastating fires in Los Angeles, serve as stark reminders of the ever-present danger of tail risk. While cutting costs might seem prudent in the short term, history teaches us that neglecting tail risk can lead to disastrous and costly consequences. This article goes deeper into concept tail risk whilst exploring ...