If you can manage a risk entirely by algorithm, you have eliminated it

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Maxims and arrows

A hearty collection of the JC’s pithiest adages.

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Courtesy of the syllogism beginning A risk you have eliminated is not a risk, this is less of a good thing than it sounds. A risk you have eliminated has no value, and your compliance cost in monitoring it is wasted. Unless you have only eliminated it because you are monitoring it — Schrodinger, hello! — in which case well played, madam: you have just bought yourself a compliance cost for nothing.

If you can manage a risk entirely by algorithm, you have eliminated it
A risk you have eliminated is not a risk
Without risk, there is no return


See also