Pictures

 

*/By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc./*

*/Follow us on Twitter/* [1]

In the September 6 issue of the Wall Street Journal, Stephen Hawking wrote a
short essay that describes the writing of his bestseller A Brief History of
Time.[1] [2]  It is a very interesting account of how a very unlikely book
became a best seller.  One of the aspects of the book that allowed it to
become so popular is that it explained theoretical physics in a way that most
people could (sort of) understand. 

Part of getting a very mathematical subject understandable to the masses is
to minimize the need for advanced mathematics.  In this article Hawking
makes a comment about this that I find to be very fascinating.  He writes,
"I don`t care much for equations myself.  This is partly because it is
difficult for me to write them down, but mainly because I don`t have an
intuitive feeling for equations.  Instead I think in pictorial terms, …"

There are two things I find fascinating about this statement that are also
relevant to risk management.  The first is that the great physicist Stephen
Hawking does not have an "intuitive feeling" for equations.  The second
is that he thinks in pictorial terms.

How many risk managers are concerned about having an intuitive feeling for
the risk situations they are trying to quantify.  How many risk managers,
particularly the most mathematical trained, are concerned with their
intuitive understanding of a situation?  Furthermore, how many risk managers
think in pictorial terms?  I suspect that many senior executives and Board
members think in pictorial terms.  If it is good enough for Stephen Hawking,
it ought to be good enough for the vast majority of risk managers.

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[1] [3] Stephen Hawking, Stephen Hawking`s Brief History of a Best Seller,
Wall Street Journal, September 6, 2013

 


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