Many risks don't stick to standard distributions. Asymmetries, outliers, extreme tails: all of this means that classic models suddenly no longer fit. For exactly these situations, Risk Kit offers a tool that is surprisingly often the best solution, and yet remains one of the most underestimated models in quantitative risk analysis. In the new Risk Kit video, I show how, with just a few inputs, you can construct a distribution that fits the shape of reality exactly, even when data is scarce or expert judgment dominates. And how this distribution “learns” as soon as new information becomes available. I also show how simulation results from specialized models can be carried over into higher-level ERM processes without any loss of information. I look forward to your comments and experiences with unconventional distribution shapes, because in practice we encounter them far more often than one might think. https://lnkd.in/ebfw9WrB
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