But can governments do better? 2  BIS central bankers’ speeches  As you know, one reason for the financial crisis was the use of risk models based on assumptions, which concentrated on expected values rather than tails.
Peter Bernstein, the financial historian from the US, illustrated this point by citing the anecdote of a Moscovite professor of statistics, who refused to go to the air-raid shelter during World War II bomb attacks. The professor argued: “See, Moscow has seven million inhabitants.