Thursday, July 2, 2015

Contentious Truths

By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
Peter Thiel, the founder of Paypal, provides in his very interesting book on start-ups called Zero to One, a very thought provoking interview question; “What important truth do very few people agree with you on?”

In risk management there are very few “truths” although a lot of risk management is presented as the truth or often justified by mathematical analysis which also falsely passes as the truth.  Therefore it might be a good idea to ask managers “what important risk idea do very few people agree with you on?”  The answers might be surprising and surprisingly good!

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