Customer Quote by Ziad K. Abdelnour
““Derivatives - The risk never leaves the system - It finds taker who believes the risk is acceptable…until they lose everything.””
About This Quote
Source Speech: Financial Risk Management Talk, 2015
Risk is inherent and will shift to those who accept it, often leading to total loss if misjudged.
In simple terms: Risk moves to those who think it's safe, sometimes causing total loss.
Key Takeaway
Recognize and price risk accurately.
Themes
risk
finance
responsibility
Mood
cautious
analytical
Type
advisory
warning
When to use this quote
- investment decisions
- portfolio management
- trading strategies
- insurance underwriting
Key Concepts
systemic risk
risk transfer
behavioral finance
Questions to Reflect On
- Do you truly understand the risk you assume?
- How can you protect against hidden systemic risk?
A Different Perspective
Risk perception can be biased, causing underestimation of true exposure.
![“We [at Soros Fund Management] use options and more exotic derivatives sparingly. We try to catch new trends early and in later stages we try to catch trend reversals. Therefore, we tend to stabilize rather than destabilize the market. We are not doing this as a public service. It is our style of…” quote by George Soros](https://sms4smile.com/quotes/img-quotes/f33/george-soros-1593_customer_we-at-soros-fund-management-use-options_113322.jpg)
