Though brands keep associating their names with tech buzzwords such as ‘metaverse’, ‘augmented reality’, ‘NFTs’, ‘blockchain’, ‘cloud computing’, and ‘gamification’, the financial industry garners unclear benefits from doing so. That might not be the case for ‘quantum’.
One of the most overlooked contributing factors to the 2008 financial crisis was the failure of Wall Street’s prevailing risk management models and systems. Such systems and models in charge of processing a high number of complex variables (such as portfolio optimization, risk estimation and financial market predictions), failed, according to experts, to “keep pace with the explosive growth in complex securities, the resulting intricate web of risk and the dimensions of the danger.” The market for credit-default swaps has been at the center of past Wall Street banking failures and rescues, and math, statistics and computer modeling fell short in calibrating the lending risk on individual mortgage loans and other kinds of risks.
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