Credit Quote by Richard Thaler
“I think one lesson we have to learn is that there's a lot more risk than we're giving credit to, a lot more what economist calls systematic risk.”
About This Quote
There is more systematic risk than people recognize, so we must account for hidden dangers.
In simple terms: Hidden systematic risk is larger.
Key Takeaway
Factor in unseen systemic risks.
Themes
risk
economics
systematic risk
Mood
cautious
pragmatic
Type
analytical
advisory
When to use this quote
- investment
- policy making
- risk management
Key Concepts
financial theory
uncertainty
Questions to Reflect On
- How can you better measure hidden risk?
- What safeguards can reduce systematic exposure?
A Different Perspective
Estimating systematic risk is complex.
