Paradoxically, another factor may have been modern risk-management practices, particularly value-at-risk. [fact]
Paradoxically, another factor may have been modern risk-management practices, particularly value-at-risk. This allows senior management to control the risks incurred by trading desks by allocating them a risk limit, while avoiding detailed supervision of their trading. When a desk reaches its value-at-risk limit, it must start to liquidate its positions.
Donald MacKenzie, An Engine, Not a Camera, loc. 1048