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A Principle Governing Climate Risk Measurement In the quantum world, uncertainty is a fundamental principle. Physicists and cosmologists agree that the behavior of matter at its most basic level is inherently stochastic. Heisenberg’s Uncertainty Principle illustrates this: pinpoint an electron’s location, and its momentum becomes random; specify its momentum, and its position becomes uncertain. While this may feel counterintuitive to our everyday experiences, it is an accepted truth of quantum physics—even Einstein, initially skeptical, ultimately acknowledged this reality. At Riskthinking.AI, we believe a similar uncertainty principle applies to modeling the future, especially in the context of climate risk. Just as quantum mechanics has reshaped our understanding of the physical universe, a stochastic approach is essential for accurately measuring and managing future climate risks. Our latest article explores this principle and its implications for climate risk management, offering insights into how organizations can navigate uncertainty to make informed, resilient decisions. Read more here: https://lnkd.in/giMUgrBY #ClimateRisk #StochasticModeling #RiskManagement #QuantumPhysics

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Founder and CEO at Riskthinking.ai

A PRINCIPLE GOVERNING CLIMATE RISK MEASUREMENT We live in a quantum world. Physicists and Cosmologists trying to understand our world, and the very basis of matter today, agree that it behaves in a weird stochastic manner. If you were sitting in the nucleus of an atom, and were pinpointing an electron’s location, trying to measure its momentum, you would find that its momentum would be completely random. And, if you specified its momentum, its position would be highly uncertain. This is known as Heisenberg’s Uncertainty Principle[1] and is a fact that is so alien to our world view. It is not the world we see around us and is not intuitive. But it is a fact. Even Einstein, when quantum theory emerged, was known to dismiss it saying: “God does not role dice” He later accepted that the world we live in is governed by the laws of quantum physics and the Heisenberg’s Uncertainty Principle. This article describes a similar uncertainty principle that governs any mathematical modelling of the future. And it should govern the way we think about measuring future climate risk. https://lnkd.in/giMUgrBY   [1] Neil Turok, The Universe Within, House of Anansi Press 2012

A new uncertainty principle

A new uncertainty principle

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