by Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
Came across a really interesting quote from Rick Cook. (Unfortunately I have been unable to track down the source where I came across the quote – if anyone knows, I would appreciate you sending me a note to help me out.) The quote is:
“Programming today is a race between software engineers trying to build bigger and better idiot-proof programs, and the universe trying to produce bigger and better idiots. So far, the universe is winning.”
Does that remind you of how the risk management function operates in your organization? The risk function tries to build systems to protect the organizations and idiots (both internal and external, human and otherwise) while the idiots keep getter bigger and better.
Does it remind you of the futility of regulators and accountants who try to build foolproof systems while the markets get more and more effective at circumventing their best efforts at risk reduction and transparency?
