ABSTRACT
That unreason is the even eviler twin brother of greed and that it exists in places where it should not provides a natural and urgent motivation for active management of risk. However, the professional discipline of investment risk management has struggled to live up to the task. Investment risk management has long been steeped in myth, magic, secrets, and legends. Anecdotal stories about the downfall of dastardly risk managers who thwart the actions of well-intentioned traders seeking nothing more than to make an honest pro›t are legion. The frequently recounted tale of “Dr. Drewzinskoff and Mr. Mumbo” captures much of the mythical lore.
