12  For example, Brock, Durlauf and West (2003, 2006) propose a model averaging approach that derives optimal policy given a policy maker’s preferences – for example, a loss function – and given a variety of possibly relevant models affecting the central bank’s target values. Apart from forecast averaging, a multiple model approach helps to address other issues where model uncertainty matters.
There is strong research to show that diversity at senior levels of regulated entities can help to reduce the likelihood of groupthink,8 improve decision-making,9 increase the level of challenge,10 and improve risk management.11 There are also increasing numbers of studies that show that diversity is a competitive differentiator; specifically, that when companies embrace gender and ethnic diversity at the leadership level, they are more likely to be successful – or to put it another way, they are less likely to fail.