Challenges Quote by John Hull

One important measurement issue concerns the fat tails problem that I mentioned earlier. VAR is concerned with extreme outcomes. If the tails of the…

— John Hull

When VAR was first introduced I think it was used regularly to try to get the right decision. But I think the use of…

— Eddie Howe

The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning…

— Alan Greenspan

Using volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the…

— Charlie Munger

What we have found over the years in the marketplace is that derivatives have been an extraordinarily useful vehicle to transfer risk from those…

— Alan Greenspan

However, perhaps the main point is that you are under no obligation to analyse variance into its parts if it does not come apart…

— Ronald Fisher

Fragility is the quality of things that are vulnerable to volatility.

— Nassim Nicholas Taleb

The risks facing hedge funds are non-linear and more complex than those facing traditional asset classessuch risks are currently not widely appreciated or well-understood

— Andrew Lo

We've used derivatives for many, many years. I don't think derivatives are evil, per se, I think they are dangerous.

— Warren Buffett

“As with all derivatives, these tools were to offer a way of controlling risk, but they could also amplify it.”

— Gillian Tett

Risk analysis can cater to any sort of hazard, but their profession owes its existence to a relatively narrow band of possible dangers.

— Ian Hacking

“Risk, as first articulated by the economist Frank H. Knight in 1921, is somethimg that you can put a price on…Uncertainty, on the other…

— Nate Silver