Allison Schrager’s career as an economist and journalist seeking to understand financial risk has taken her from Nevada’s legal brothels and Kentucky stud farms to surfing conventions in Hawaii and the world of the New York paparazzi. On the latest episode of the ABA Banking Journal Podcast — sponsored by RIVIO Clearinghouse, the future of financial information interchange — the author of the recent book An Economist Walks into a Brothel and Other Unexpected Places to Understand Risk shares her unique perspective on:

• The importance of understanding risk-free alternatives and how that might encourage people to take appropriate risks.
• How bankers — whose business model is entirely about risk management — can help their customers better understand risk.
• Why the choices faced by top big-wave surfers perfectly illustrate systemic financial risk.
• How buyers of basic economy airline tickets receive a premium in exchange for reducing the airline’s risk.