In 2008, Wall Street guru Michael Burry realizes that a number of subprime home loans are in danger of defaulting. Burry bets against the housing market by throwing more than $1 billion of his investors' money into credit default swaps. The Big Short was better than all the predictive analytics of the best practitioners in the world.
Global risks seem more complex today as visualised in the main article below. That makes it more important than ever that people with real knowledge and experience are a counterpoint to data scientists, analysts and that ilk. Both sides of the spectrum are important but it is too easy for the intellectually driven to feed the herd instinct of the willing majority to follow predictions blidly ( because the visualisations are so imptressive, the report author's so impressive and the algorithms so complex and mysterious.
Put self-service analytics in the hands of line-of-business professionals in healthcare, finance and insurance, banking, supply chain, agriculture, media, smart cities, utilities, oil and gas- in fact every sector of private a public organisations.
We will then be better able to emulate Michael Burry .
The increasing volatility, complexity and ambiguity of the world not only heightens uncertainty around the “which,” “when,” “where” and “who” of addressing global risks but also clouds the solutions space. We need clear thinking about new levers that will enable a wide range of stakeholders to jointly address global risks, which cannot be dealt with in a centralized way.
http://insurancethoughtleadership.com/the-global-risks-report/
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