# Complacency (this is how it is usually expressed in German; less often translated as negligence)

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- Post ID: 589666
- Modified: 2023-07-25T21:01:13+00:00
- Language: en

## Definition

The fact that - most market participants rely on stability in the financial markets and - exclude possible risks from (even worldwide) turbulences in their expectations - with the danger of not being sufficiently prepared for such distortions when they occur. - The reason for this is often also the prevalence of uncritical model faith. A seemingly reassuring result from a risk model can sometimes be a distorted signal; for example, market risk models in times of unusually low volatilities or credit risk models in the environment of a real estate bubble. - See meltdown risk, financial mathematics, liquidity management, risk models, stress test. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1