Deviation Quote by Elroy Dimson
“"Risk means more things can happen than will happen." It is not standard deviation. It is not variability. It is this sense that the future events are highly variable and unknowable that gives us the best sense for risk.”
About This Quote
Source Book: The Economics of Risk, 2018
Risk is the uncertainty of future events, not just statistical spread; it reflects the unknowable nature of outcomes.
In simple terms: Risk = unknown future, not just variance.
Key Takeaway
Accept uncertainty, plan for unknowns.
Themes
uncertainty
decision‑making
finance
Mood
analytical
cautious
Type
theoretical
practical
When to use this quote
- investment
- insurance
- project planning
- strategic forecasting
Key Concepts
probability theory
behavioral economics
Questions to Reflect On
- How do you balance risk perception with action?
- What tools help you manage unknowable futures?
A Different Perspective
Risk assessment can be paralyzed by over‑analysis.
