New Quant Models And Algorithms Can’t Offset Bad Human Judgment
April 21, 2010
• Jeffrey Kutler
The September 11, 2001, terrorist attacks gave Silicon Valley a shot in the arm. Executives and engineers there and in other high-tech hotbeds, then reeling from the dot-com debacle, saw growth opportunities through the gloom. They reasoned that if 9/11 was a systems failure whether of metal detectors or passport databases then surely new investments in advanced technologies could enhance what came to be known as homeland security while helping to root out enemies of the state.
Technology markets have recovered, with defense and counterterrorism spending playing a part. But notwithstanding data mining and no-fly lists, baggage scans and experiments with fingerprinting and other foolproof identity methods, the war has yet to be won. According to Bruce Schneier, chief security technology officer of telecom giant BT Group, only two measures can be credited with making flying safer: reinforced cockpit doors and passengers willingness to resist and subdue evildoers on board. ....