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Risk Aversion Quotes

Browse 14 quotes about Risk Aversion.

Risk Aversion Quotes

“Fear and anxiety affect decision making in the direction of more caution and risk aversion... Traumatized individuals pay more attention to cues of threat than other experiences, and they interpret ambiguous stimuli and situations as threatening (Eyesenck, 1992), leading to more fear-driven decisions. In people with a dissociative disorder, certain parts are compelled to focus on the perception of danger. Living in trauma-time, these dissociative parts immediately perceive the present as being "just like" the past and "emergency" emotions such as fear, rage, or terror are immediately evoked, which compel impulsive decisions to engage in defensive behaviors (freeze, flight, fight, or collapse). When parts of you are triggered, more rational and grounded parts may be overwhelmed and unable to make effective decisions.”

“Human individuals and human organizations typically have preferences over resources that are not well represented by an "unbounded aggregative utility function". A human will typically not wager all her capital for a fifty-fifty chance of doubling it. A state will typically not risk losing all its territory for a ten percent chance of a tenfold expansion. [T]he same need not hold for AIs. An AI might therefore be more likely to pursue a risky course of action that has some chance of giving it control of the world.”

“The scarcity mindset in dating often goes hand in hand with the sunk cost fallacy. The sunk cost fallacy says that it is bad to lose something we have invested time, money, energy or emotions into, regardless of whether that something is still actually doing anything for you. Humans are highly risk averse creatures, so we tend to prefer NOT losing something over potentially gaining something, even if we don't like what we would lose.”

“In this chapter I focused on the dopamine-driven reward system and its role in delivering life's goodies. But there's a mirror-image brain network, often called the loss avoidance system, whose job it is to call our attention to risk. If the reward network chases shiny fruit, the loss avoidance system worries about bad apples.”

“She takes a cautious approach to toasting bread. She does it by degrees, nervous of burning it. But the trouble is, by popping it up and down five times to check on its progress, she provides herself with plenty of opportunities to forget about the toast entirely and burn it to a crisp. Her cautious approach to toasting, I fancy, actually has the unintended consequence of making it more likely she'll burn her breakfast. Is there a life lesson in this, I wonder?”

“Below, we itemize some of the quite different lessons investors seem to have learned as of late 2009 - false lessons, we believe. To not only learn but also effectively implement investment lessons requires a disciplined, often contrary, and long-term-oriented investment approach. It requires a resolute focus on risk aversion rather than maximizing immediate returns, as well as an understanding of history, a sense of financial market cycles, and, at times, extraordinary patience.”

“So my message is in whichever realm, be it going into space or going into the deep sea, you have to balance the yin and yang of caution and boldness, risk aversion and risk taking, fear and fearlessness. No great accomplishment takes place, whether it be a movie or a deep ocean expedition, or a space mission, without a kind of dynamic equipoise between the two. Luck is not a factor. Hope is not a strategy. Fear is not an option.”