Good Risk Management Quotes & Sayings

We are pioneers and the history of pioneers is not that good. — Jeff Bezos

I don't see what the alternative to risk management is. If it's just getting rid of the models and instead using the smart people who can figure it out? How do you train them? What do you teach them? Do you just put them in a cockpit and let them stumble for 10 years of their life and then after that they're good at it? — Robert F. Engle

I found the concept of hindsight bias fascinating, and incredibly important to management. One of the toughest problems a CEO faces is convincing managers that they should take on risky projects if the expected gains are high enough. Their managers worry, for good reason, that if the project works out badly, the manager who championed the project will be blamed whether or not the decision was a good one at the time. Hindsight bias greatly exacerbates this problem, because the CEO will wrongly think that whatever was the cause of the failure, it should have been anticipated in advance. And, with the benefit of hindsight, he always knew this project was a poor risk. What makes the bias particularly pernicious is that we all recognize this bias in others but not in ourselves. — Richard H. Thaler

Stock prices relative to company assets are no better at signaling the likelihood of future earnings growth than they were the day the Titanic sank, and risk management is a good deal worse. — Timothy Noah

Management guru Jim Collins has some good words here. He and Morten T. Hansen studied leadership in turbulent times. They looked at more than twenty thousand companies, sifting through data in search of an answer to this question: Why in uncertain times do some companies thrive while others do not? They concluded, "[Successful leaders] are not more creative. They're not more visionary. They're not more charismatic. They're not more ambitious. They're not more blessed by luck. They're not more risk-seeking. They're not more heroic. And they're not more prone to making big, bold moves." Then what sets them apart? "They all led their teams with a surprising method of self-control in an out-of-control world."2 — Max Lucado

Time Management Tips: The perpetual processing of the same temptation is both dangerous and time-wasting. Cycling and recycling the same temptation (instead of rejecting such blandishment out of hand) is not only to risk one's soul, again and again, but is to bring on fatigue, so that the Adversary may be able to do indirectly what we will not let him do directly. A lack of decisiveness in dealing with temptation ties up our thought processes and prevents us from doing good with the time allotted to us. — Neal A. Maxwell

THE ONLY WAY TO MAKE PROGRESS IN BUSINESS IS THROUGH CHANGE. AND CHANGE, BY DEFINITION, HAS A CERTAIN AMOUNT OF RISK ATTACHED TO IT. BUT IF YOU PICK YOUR SHOTS, USE YOUR HEAD, AND APPLY GOOD MANAGEMENT, THOSE ROLLS OF THE DICE CAN TURN OUT PRETTY — Phil Rosenzweig

The smart strategist allows strategy to be shaped by events. Good reactions can make great strategy. Strategy involves competition of goals, and the risk is the difference between those goals and the ability of the organization to achieve them. So part of the risk is created by the strategy. — Max McKeown