A Quote by Myron Scholes

A bank needs models to measure risk. The problem, however, is that any one bank can measure its risk, but it also has to know what the risk taken by other banks in the system happens to be at any particular moment.

Myron Scholes

Quote Topics

Also Any Bank Banks Happens However Know Measure Models Moment Needs Other Particular Problem Risk System Taken

Quote Author

Myron Scholes
Canadian - Economist
Born: July 1, 1941

Most of the time, your risk management works. With a systemic event such as the recent shocks following the collapse of Lehman Brothers, obviously the risk-management system of any one bank appears, after the fact, to be incomplete. We ended up where banks couldn't liquidate their risk, and the system tended to freeze up.

Myron Scholes

Using volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.

Charlie Munger

Operational risk is the risk of loss resulting from bank operational failures, such as rogue traders, fraudulent sales practices, and cyber risks. Operational risk capital is money or assets that banks have to hold to shield the economy from the consequences of these kinds of failures.

Seth Moulton

to love is to risk, not being loved in return. to hope is to risk pain. to try is to risk failure. but risk must be taken because the greatest hazard in my life is to risk nothing.

Bob Marley

To laugh is to risk appearing a fool. To weep is to risk appearing sentimental. To reach out to another is to risk involvement. To expose feelings is to risk exposing your true self. To place your ideas and dreams before a crowd is to risk their loss. To love is to risk not being loved in return. To hope is to risk pain. To try is to risk failure. But risks must be taken, because the greatest hazard in life is to risk nothing.

William Arthur Ward

We regard using [a stock's] volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return. Some great businesses have very volatile returns - for example, See's [a candy company owned by Berkshire] usually loses money in two quarters of each year - and some terrible businesses can have steady results.

Charlie Munger

Mastery over the body - its impulses, its needs, its size - is paramount; to lose control is to risk beauty, and to risk beauty is to risk desirability, and to risk desirability is to risk entitlement to sexuality and love and self-esteem.

Caroline Knapp

The people that lend you money basically give you an answer based on the risk that they are willing to take. But just because a bank is willing to take a particular risk doesn't mean that that is the right amount for me to spend.

Dan Ariely

What we've done last night is what I call pushing back the risks..If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself? If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders.

Jeroen Dijsselbloem

Nothing did more to spur the boom in stocks than the decision made by the New York Federal Reserve bank, in the spring of 1927, to cut the rediscount rate. Benjamin Strong, Governor of the bank, was chief advocate of this unwise measure, which was taken largely at the behest of Montagu Norman of the Bank of England....At the time of the Banks action I warned of its consequences....I felt that sooner or later the market had to break.

Bernard Baruch

I have to say that in this particular cow that we're dealing with, those parts of the cow were removed, and so we don't think there's any risk or very negligible risk to human health with this particular incident.

Ann Veneman

In the financial system we have today, with less risk concentrated in banks, the probability of systemic financial crises may be lower than in traditional bank-centered financial systems.

Timothy Geithner

In the financial system we have today, with less risk concentrated in banks, the probability of systemic financial crises may be lower than in traditional bank-centered financial systems

Timothy Geithner

It’s all risk. And if it isn’t, it needs to be. The real trick is to find the risk that is right for you, a risk that doesn’t take you so far out of your own identity that it’s not a you that you recognize who’s doing the writing.

Jim Krusoe

I only bet on what's dearest to a man's heart. Else there is no way to tell if he's bluffing. What a man is willing to risk or not to risk, that's a measure of his soul.