Will Technology Improve Risk Management?

An article in The Economist argues that the ability to objectively measure things better in the future will allow different types of risk to be managed effectively. The part I found most interesting:

It will also be possible to create for individuals contracts that provide incentives for them to advance their own individual careers. These would be analogous to the kind of contracts that venture-capital firms draw up for the management of young companies. An individual may then go forth and develop a highly risky personal career, acquiring specialised skills that also have a small probability of being extremely important but carry as well a risk of becoming useless. Such individual contracts could be a breathtakingly important stimulus for our economy, if they free people from career risks and allow them to be more adventurous in all aspects of their careers. We may then expect to see an explosion of individual creativity and diversity.