Best ERM Quotes of 2010

There were 68 new posts to the Risk Management Quotes page on Riskviews in 2010.

Here are my favorite 10.  You may disagree.

‘No institution, including our own, should be too big too fail’.   Jamie Dimon

‘We did eat our own cooking – and we choked on it’.  Brian Moynihan

So it is said that if you know your enemies and know yourself, you can win a hundred battles without a single loss.  If you only know yourself, but not your opponent, you may win or may lose.  If you know neither yourself nor your enemy, you will always endanger yourself.    Sun Tzu

“We focus on risk before we focus on return. The best investors do not target return. They focus first on risk.”  Seth Klarman

Barings was always described as this wake up call that nobody would ever forget, but the fact is, only lip service was ever played to the fact that risk management needed to improve  Nick Leeson (in 2009)

Information about causation, even if imperfect, is powerful. It is ignored in the frequentist approach at a great loss for the risk manager.   Organizing one’s understanding about how the world might work into a coherent and tractable analytical probabilistic framework is not an easy task.  Ricardo Rebonato

Fill your bowl to the brim and it will spill.  Lao Tzu

The essential problem is that our models—both risk models and economic models—as complex as they have become, are still too simple to capture the full array of critical variables that govern global economic reality.  Alan Greenspan

Economies are in greatest peril not when investors willfully take crazy financial risks but when no one seems to perceive risk and the need to insulate the economy from it.  Nicole Gelinas

“What one does see, again and again, in the history of financial crises is that when an accident is waiting to happen, it eventually does.” Reinhart &  Rogoff

Explore posts in the same categories: ERM


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One Comment on “Best ERM Quotes of 2010”

  1. Greenspan’s quote re risk and economic models STILL isn’t right…too many assumptions the worst being that we just accept that uncertainty will happen and that there is equilibrium in real live economic systems. Duh!

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