For example, economic capital models (ECMs) reduce risk -- but having a complex model doesn't work any better than a simple model.
Tyler
Leverty
Tyler Leverty
Ty Leverty is an associate professor in the Department of Actuarial Science, Risk Management, and Insurance at the Wisconsin School of Business. Prior to joining the faculty at UW-Madison, Leverty was an associate professor of finance and the TRISTAR risk management research fellow at the University of Iowa’s Tippie College of Business.