Five Traders and Five Risk Managers are travelling to go to a conference. Each Risk Manager goes to the machine to buy a ticket each, whilst the five Traders only buy 1 between the five of them. Just before the ticket inspector arrives the five Traders lock themselves in the bathroom…when the inspector sees the locked door he knocks and shouts “tickets please!”…at that point the Trader with the ticket slips it under the door. The inspector, satisfied that he has seen the ticket moves on… The Risk Managers are really angry! On the way back the five Risk Managers buy only one ticket, whilst the Trades buy none. As they board the train the Risk Managers immediately lock themselves in the bathroom. Seeing this happen the Trader runs up to the door, knocks and shouts “tickets please!”…at which moment the Risk Managers slip the ticket under the door. The Trader takes the ticket and goes off… The Moral of the story: Risk Managers always try to apply the Trader’s methods without ever understanding them…
Yeah, who needs risk management. Bear, AIG, Lehman etc ignored them, and they’re flying high.
There are always some risks that nobody can manage.
actuaryalfred Wrote: ------------------------------------------------------- > There are always some risks that nobody can > manage. Like “die” risk. http://www.analystforum.com/phorums/read.php?1,902415
Five Risk Managers and Five Traders are travelling to go to a conference. Each Trader goes to the machine to buy a ticket each, whilst the five Risk Managers only buy 1 between the five of them. Just before the ticket inspector arrives the five Risk Managers lock themselves in the bathroom…when the inspector sees the locked door he knocks and shouts “tickets please!”…at that point the Risk Manager with the ticket slips it under the door. The inspector, satisfied that he has seen the ticket moves on… The Traders are really angry! On the way back the five Traders buy only one ticket, whilst the Trades buy none. As they board the train the Traders immediately lock themselves in the bathroom. Seeing this happen the Risk Manager runs up to the door, knocks and shouts “tickets please!”…at which moment the Traders slip the ticket under the door. The Risk Manager takes the ticket and goes off… The Moral of the story: Traders always try to apply the Risk Manager’s methods without ever understanding them…
weak…plus you messed it up.