Optimisation: Difference between revisions
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'' | 1. ''Treasury - corporate finance - risk management''. | ||
Strictly, optimisation is a process of creating the best possible combination of conditions to achieve a particular objective. | |||
:<span style="color:#4B0082">'''''Black swan author sceptical of optimisation'''''</span> | |||
:"You have to avoid optimization. | |||
:That is quite critical for someone who is doing finance to understand because it goes counter to everything you learn in portfolio theory.... | |||
:I have always been very sceptical of any form of optimization. In the black swan world, optimization isn't possible. | |||
:The best you can achieve is a reduction in fragility and greater robustness." | |||
:''Living with Black Swans - Nassim Nicholas Taleb.'' | |||
2. ''Treasury - corporate finance - risk management - operations''. | |||
More broadly, optimisation is a process of making changes to improve results. | |||
== See also == | == See also == | ||
* [[Black swan]] | * [[Black swan]] | ||
* [[Corporate finance]] | |||
* [[Correlation]] | |||
* [[Efficiency]] | |||
* [[Fat tail]] | * [[Fat tail]] | ||
* [[Guide to risk management]] | * [[Guide to risk management]] | ||
* [[Heuristic]] | * [[Heuristic]] | ||
* [[Interest rate optimisation]] | |||
* [[Minimum variance portfolio]] | |||
* [[Operations]] | |||
* [[Optimal capital structure]] | * [[Optimal capital structure]] | ||
* [[Portfolio ]] | |||
* [[Portfolio analysis]] | * [[Portfolio analysis]] | ||
* [[Probability]] | * [[Probability]] | ||
* [[Redundancy]] | * [[Redundancy]] | ||
* [[Risk]] | * [[Risk]] | ||
* [[Risk management]] | |||
* [[Search engine optimisation]] (SEO) | |||
* [[Stress]] | |||
* [[Stress test]] | * [[Stress test]] | ||
* [[Treasury]] | |||
* [[Volatility]] | |||
* [[Working capital management]] | |||
==Other resource== | |||
*[https://knowledge.wharton.upenn.edu/podcast/knowledge-at-wharton-podcast/nassim-taleb-on-living-with-black-swans/ Living with Black Swans - Nassim Nicholas Taleb] | |||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
[[Category:Identify_and_assess_risks]] | [[Category:Identify_and_assess_risks]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
[[Category:The_business_context]] | |||
Latest revision as of 21:31, 25 July 2024
1. Treasury - corporate finance - risk management.
Strictly, optimisation is a process of creating the best possible combination of conditions to achieve a particular objective.
- Black swan author sceptical of optimisation
- "You have to avoid optimization.
- That is quite critical for someone who is doing finance to understand because it goes counter to everything you learn in portfolio theory....
- I have always been very sceptical of any form of optimization. In the black swan world, optimization isn't possible.
- The best you can achieve is a reduction in fragility and greater robustness."
- Living with Black Swans - Nassim Nicholas Taleb.
2. Treasury - corporate finance - risk management - operations.
More broadly, optimisation is a process of making changes to improve results.
See also
- Black swan
- Corporate finance
- Correlation
- Efficiency
- Fat tail
- Guide to risk management
- Heuristic
- Interest rate optimisation
- Minimum variance portfolio
- Operations
- Optimal capital structure
- Portfolio
- Portfolio analysis
- Probability
- Redundancy
- Risk
- Risk management
- Search engine optimisation (SEO)
- Stress
- Stress test
- Treasury
- Volatility
- Working capital management
