RISK QUOTE: The safety lecture continues. “In the unlikely event
of a water landing…” Well, what exactly is a water landing?
Am I mistaken, or does this sound somewhat similar to
CRASHING INTO THE OCEAN?
—GEORGE CARLIN, COMEDIAN
RISK QUOTE: Nothing can stop the man with the right mental
attitude from achieving his goal; nothing on earth can help the
man with the wrong mental attitude.
—THOMAS JEFFERSON, U.S. PRESIDENT
In the previous chapter, we saw the basics of a high-tech platform. In this chapter, we show how the system is enhanced if it allows us to tag risks. Tagging is a process of identifying a series of interrelated risks and looking only at the “tagged” risks. Tagging removes the clutter of multiple levels of exposure. It is the technique used in the discussion of AIG and credit default swaps in Chapter 7. Now let us take a look at tagging using the Riskonnect™ technology.
Our example is CP&L once again, but let us change the name to avoid confusion. We are working with an environmental project. As shown in Figure 9–1, our company, now called Public Power and Light (PP&L), has the same top business units as CP&L.
Instead of looking through the business units, we focus on a