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Risk is one of the most important topics addressed in the boardroom. It is also one of the trickiest. In this article, Matthew Leitch, a member of the Centre for Risk Research and a coauthor of the Southampton Business School's guide, “Directing Risk Management in Organizations,” starts from the perspective that the received wisdom that the board can somehow be directly involved in every decision involving risk in their organization, because they have considered the principal risks, and set a risk appetite is a fantasy. The reality he explores here is that most of the thinking that takes place in an organization does not involve the board and requires a quantity of thinking that is orders of magnitude more than the board itself can deal with.

A cryptocurrency needs a relatively stable value if it is to fulfill the traditional functions of money and be useful as a currency. To achieve this, controls are needed within the ecosystem of the cryptocurrency. Although a simulation cannot predict future currency rates or other variables exactly, it is argued that a model that simulates a range of challenging behavior can be a useful testbed for control schemes. To illustrate and explore this idea, an agent-based economic model was used to simulate the early period of a hypothetical cryptocurrency and test two control mechanisms. The results suggest that this approach may be fruitful and that it may be important to include more than just coin minting within the control scheme. An economic simulation model is likely to be a valuable tool in developing and regulating effective cryptocurrency systems.

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