22
Jun
2012
Never Blame the Risk Model
Categories: Crisis, Financial Services, Taking & Managing Risk
Federal regulators released a report about what caused the San Onofre nuclear power plant in California to leak radioactive steam in January. It said excessive wear caused steam tubes at the plant to rupture – an event that “had never been seen before,” according to a federal official, and hadn’t been anticipated by the manufacturer’s computer model.
Faulty computer models aren’t confined to the world of nuclear power, of course. Just ask Jamie Dimon. But it’s the managers - not the models – that must shoulder the blame when things go wrong.
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