--- title: "Meaning & Key Takeaway of: In engineering, people have a big margin…" description: "\"In engineering, people have a big margin of safety. But in the financial world, people don't give a damn about safety. They let it balloon and balloon ..." image: "https://sms4smile.com/quotes/i/e8a/charlie-munger-458_accounting_in-engineering-people-have-a-big-margin_1891460.jpg" --- # In engineering, people have a big margin of safety. But in… ![“In engineering, people have a big margin of safety. But in the financial world, people don't give a damn about safety. They let it balloon and balloon and balloon. It's aided by false accounting.” quote by Charlie Munger](https://sms4smile.com/quotes/i/e8a/charlie-munger-458_accounting_in-engineering-people-have-a-big-margin_1891460.jpg) [Download](https://sms4smile.com/quotes/i/e8a/charlie-munger-458_accounting_in-engineering-people-have-a-big-margin_1891460.jpg) [Open image](https://sms4smile.com/quotes/i/e8a/charlie-munger-458_accounting_in-engineering-people-have-a-big-margin_1891460.jpg) > “In engineering, people have a big margin of safety. But in the financial world, people don't give a damn about safety. They let it balloon and balloon and balloon. It's aided by false accounting.” [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. In engineering safety margins are built in, but finance often ignores risk, inflating danger through deceptive accounting. **In simple terms:** Finance neglects safety unlike engineering. Key Takeaway Prioritize risk management. Themes risk ethics finance Mood critical concerned Type ethical analytical When to use this quote - investment decisions - regulatory oversight - corporate governance Key Concepts moral hazard systemic risk Questions to Reflect On - What mechanisms can enforce safety in finance? - How does false accounting erode trust? A Different Perspective Safety margins can be hard to enforce without transparent reporting. ★ ★ ★ ★ ★ No ratings yet [Balloons](https://sms4smile.com/quotes/about/balloons/) [Engineering](https://sms4smile.com/quotes/about/engineering/) [Giving](https://sms4smile.com/quotes/about/giving/) [People](https://sms4smile.com/quotes/about/people/) [Safety](https://sms4smile.com/quotes/about/safety/) [World](https://sms4smile.com/quotes/about/world/) ## Related quotes > [I did engineering, and when people asked me my career plans, I used to say I would do an MBA.](https://sms4smile.com/quotes/vicky-kaushal/i-did-engineering-and-when-people-asked-me-my-career-plans-i-used-to/) [Vicky Kaushal](https://sms4smile.com/quotes/author/vicky-kaushal/) > [Proper accounting is like engineering. You need a margin of safety. 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