Alpha Magazine's [1] April 2009 issue contains a Commentary on the future of Risk Management by IA CEO Damian Handzy:
"The most interesting — and potentially promising — reaction to the current financial crisis has been the clamoring to fix, or even replace, one of the basic tenets underlying our understanding of economics, markets and risk management: the Efficient Market Hypothesis. The problems with the assumptions made by the EMH — which is the notion that market prices incorporate information instantaneously and rationally — have been well documented. But if markets don’t have instantaneous access to perfectly correct information, if the behavior of all market participants is not totally rational and if price movements are not totally independent of all ..."
Click Here for a read-only copy of the article (pdf) [2].
Links:
[1] http://www.iimagazine.com/alpha
[2] http://www.investoranalytics.com/sites/default/files/file/Alpha_April_2009_Unhedged.pdf