Andrew Lo Quotes

I think the credit default swaps can take the place of the rating agencies who really have missed the ball in this procedure and are quite conflicted by the way the ratings are paid for. So, I would like to see credit default swaps become an evermore important way of understanding credit risk in the economy.

Risk managers and investment bankers and actually, all kinds of investors took on more risk than they expected. So there was a failure of risk management. There was a failure to recognize how much risk there was in some of these securities that people bought.

It's important to take risks.

The government-sponsored institution Fannie Mae, when I look at its risks, seems to be sitting on a barrel of dynamite, vulnerable to the slightest hiccup. But not to worry: their large staff of scientists deemed these events "unlikely."

It's the investor who is risky, not the investment.

I agree with a lot of the points in Taleb's book, but I don't agree with many of his conclusions. It seems to me that he rightly points out that risk managers miss a lot of the risks, but the conclusion is that he draws, is that we should abandon risk management, whereas my conclusion is we should improve it.

Risk is what you make of it.

The difference between a calculated risk and rolling the dice can be expressed in one word: homework.

I think risk is important. I don't care if it's a great financial risk or a physical risk. You only get out of something what you put into it and the fact that you are willing to risk something means that you are going to get a lot more out of it.

Almost everything worthwhile carries with it some sort of risk.

The biggest risk is not taking any risk.

Risk is a function of how poorly a strategy will perform if the 'wrong' scenario occurs.

No misfortune is worse than underestimating the enemy. Underestimating the enemy, I risk losing my treasure.

All inquiries carry with them some element of risk.

Boundaries and risk management are very important parts of living a healthy and positive life.

I think we should follow a simple rule: if we can take the worst, take the risk.

Health care is very different from other sectors of the economy in several respects, one of which is the fact that the risk can be very high beyond people's ability. That leads to insurance.

Risk deters those who see what they could lose. Those focused on the gain see it as a necessary part of their journey, even if the possibility of loss exists.

I'm in the business where I can't ever say there's no risk associated with someone.

Risk is not a dirty word.

Avoiding danger is no safer in the long run than exposure.

Most innovators are successful to the extent to which they define risks and confine them.

Take calculated risks.

The ones who make it, are the ones who manage risk.

The reward is in the risk.