In the article How to Spot the Future - Wired Magazine UK Edition, Jun-12 Issue - it is recommended to apply 7 rules. Yesterday, I have given some thoughts on Surf the Exponentials, today on Bank on Openness.
And again, what is the position of us - UnRiskers.
Financial businesses are becoming more complex in the sense of creating margins and delivering solutions for want-to-make money users.
There is risk enough. Impossible for practitioners to stem extra operational risk as well as for solution providers to assign excessive extra development cost to avoiding that operational risk.
Looking into recruiting demands you see new slots for model validation. Model validation needs in its kernel a lot of cross model and method validation.
Impossible, to understand if you needed to deal with black boxes.
This is why we deliver what we call: know-how packages.
Software with a documentation that also looks behind the curtain (white box principle). Being part of the Mathematica documentation system one can perform calculations.
And we have established the UnRisk Academy to go far beyond product use training and give full explanation on quantitative theories, mathematical approaches, numerical treatment and implementation details.
But our openness became two-sided, when we decided to unleashing the programming power behind out UnRisk FACTORY solution suite. UnRisk engines, UnRisk services and UnRisk add ons with APIs for the major programming languages. Enabling other innovators to build solutions we could build.
Openness requires trust. We trust in the power of co-evolution.
Many, many problems in quant finance are still unsolved - from detailed valuation instabilities to systemic risk.
I really like JOI ITO's (director of the MIT Media Lab) view: instead of being a futurist, you might want to be a nowist.