The [Value at Risk model] was like a faulty speedometer…
![“The [Value at Risk model] was like a faulty speedometer, which is arguably worse than no speedometer at all. If you place too much faith in the broken speedometer, you will be oblivious to other signs that your speed is unsafe. In contrast, if there is no speedometer at all, you have no choice but…” quote by Charles Wheelan](https://sms4smile.com/q/img-quotes/738/charles-wheelan-23089_risk_the-value-at-risk-model-was-like-a-fault_2400195.jpg)
““The [Value at Risk model] was like a faulty speedometer, which is arguably worse than no speedometer at all. If you place too much faith in the broken speedometer, you will be oblivious to other signs that your speed is unsafe. In contrast, if there is no speedometer at all, you have no choice but to look around for clues as to how fast you are really going.””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Relying on a flawed risk model can blind you to real dangers, while lack of a model forces broader vigilance.
In simple terms: Bad models mislead; no model forces careful observation.
Key Takeaway
Question assumptions and seek multiple signals.
Themes
risk management
decision making
uncertainty
Mood
cautious
analytical
Type
advisory
educational
When to use this quote
- financial analysis
- project planning
- personal safety
- policy design
Key Concepts
statistical modeling
cognitive bias
systems thinking
Questions to Reflect On
- What alternative indicators could you monitor?
- How do you balance model reliance with independent judgment?
A Different Perspective
Even without a model, you may still miss critical cues if you ignore other information.