Scenario: Credit Rating Agencies and the Subprime Crisis

[CatTruxillo]

This is a discussion forum for the activities in the Robustness module of the Free SAS e-learning course, Responsible Innovation and Trustworthy AI.

Scenario: Credit Rating Agencies and the Subprime Crisis

Consider This: 

Can a risk reduction strategy, like insurance contracts, actually increase risk?

How does independent oversight improve robustness?

Please share your ideas in this discussion. 

[DavidGould]

If I was the insurance company, I would have to blame my own lack of foresight in crafting policy exclusions. These exclusions would in turn have made the policy holder more cautious. 

[CarlosBarrera]

Actually yes, because is delegating the risk to other actors. Without the proper oversight of the whole process, one by one case can be underestimated.