Great first post! QQ on risk visualization: there's been debate on the effectiveness of loss exceedence curves (LECs) in the CRQ community. I've found that _interactive_ LECs are effective, what has been your experience, Tony? (in LECs and visualizations generally)
I like LECs generally because people outside of security usually recognize them from MBA, finance, econ, and stats classes. The barrier to entry is fairly low, and they show the shape of risk easily. With a few follow-up narratives, you can communicate risk quickly, which is great because I often only have a few minutes of people's time. I recognize the LEC is not without flaws.
I've seen interactive LECs but haven't used them in practice yet. It seems very compelling though, and probably a quick way to start conversations around decisions and investments.
What's your experience been with the interactive versions? Any specific tools or approaches that work well?
Great post Tony -including the sharing of thought leadership CRQ links! Looking forward to the future issues & deep dives.
Great first post! QQ on risk visualization: there's been debate on the effectiveness of loss exceedence curves (LECs) in the CRQ community. I've found that _interactive_ LECs are effective, what has been your experience, Tony? (in LECs and visualizations generally)
Thanks for reading, John!
I like LECs generally because people outside of security usually recognize them from MBA, finance, econ, and stats classes. The barrier to entry is fairly low, and they show the shape of risk easily. With a few follow-up narratives, you can communicate risk quickly, which is great because I often only have a few minutes of people's time. I recognize the LEC is not without flaws.
I've seen interactive LECs but haven't used them in practice yet. It seems very compelling though, and probably a quick way to start conversations around decisions and investments.
What's your experience been with the interactive versions? Any specific tools or approaches that work well?
My friend Dave had success with (semi) interactive LECs using a Hubbard Excel template. I've used plotly for this purpose, which works well with R and python both. I included an example in quantrr, the free tool I'm working on: https://jabenninghoff.github.io/quantrr/sample/analysis/widgetsys.html#loss-exceedance-curves
I have a TODO to make the output clearer (not use scientific notation, use percentages)
This is really cool - thanks for sharing! This is an area I really want to explore more.
What a gold mine of practical experience backed information! Hoping to attempt doing this for an OT segment!