by Jay Heiser | August 29, 2012 | Comments Off
Replacing a button on one of my customer-facing shirts this weekend motivated some thoughts on resiliency. Why did the button fall off in the first place? It was sewn on by machine, a clever bit of automation that is based on interlocking threads from the top of the garment with threads from the bottom. It [...]
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Category: risk management Tags: resiliance, resiliency
by Jay Heiser | August 3, 2012 | Comments Off
If you wanted to sabotage a trading system, you might set out to design suicide mechanisms that look very much like today’s automated trading mechanisms. Blaming Knight Capital’s screwed pooch on ‘software bug’ is a simplistic and flawed starting point for understanding the bigger risk picture. Automated mechanisms within trading systems act as positive feedback [...]
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Category: Policy risk management Strategic Planning Tags: brittleness, cascading failure, reliability, resiliency, systemic risk, too big to fail
