Risk - pricing is intrinsically a problem - fraught process , since it relies on assumptions about unknowns , in advance of actual events .
These unknowns may include factors that were not previously anticipated or included in the mathematical models .
Risk - pricing is intrinsically a problem - fraught process , since it relies on assumptions about unknowns , in advance of actual events , and these unknowns may include factors that were not previously anticipated or included in the mathematical models .