I'll not even try to give a definition of 'Risk Management'.
More than the word Risk, Risk Management is full of traps and paradoxes.
Just to mention some.....
Risk Management is...
Avoiding Risk
One of the trickiest parts of Risk Management is that we often are trying to avoid Risk at any price.
By doing so, we introduce a new risk: It gets harder to achieve shareholder and client value.
Often returns will decline because of over-capitalisation and a risk-return unbalance.
Finally we have to compete in new risk areas we're not experienced in.
It's all well expressed in a cartoon on cartoonstock:
'We've considered every potential risk, except the risks of avoiding all risks.'
Personally I prefer the challenging Risk Management quote of Jos Berkemeijer, that states:
Better than trying to define Risk or Risk Management, it is to study and get inspired by Risk Quotes.
Therefore I conclude this Blog with a link to the Blog 'Risk Quotes'
You can place a random quote like this one:
on your website or Blog by copying the next javascript code.
Install Instructions
Related Links
- Risk Quotes
- Riskviews: quotes
- Best Risk Management Quotes
- Death of Risk Management
More than the word Risk, Risk Management is full of traps and paradoxes.
Just to mention some.....
Risk Management is...
- not primarily about risk that can be calculated with a 99,x% confidence level
- dealing with Risks you know will come, but can't be calculated
- more about correlation in time than mean estimates and standard deviation
- more about prevention, foreseeing and managing risk than capitalisation of risk
- more about taking risks to benefit, than trying to exclude risks
- fighting risk instead of excluding risk
- making Plans B and C, in case your confidence level fails
Avoiding Risk
By doing so, we introduce a new risk: It gets harder to achieve shareholder and client value.
Often returns will decline because of over-capitalisation and a risk-return unbalance.
Finally we have to compete in new risk areas we're not experienced in.
It's all well expressed in a cartoon on cartoonstock:
'We've considered every potential risk, except the risks of avoiding all risks.'
Personally I prefer the challenging Risk Management quote of Jos Berkemeijer, that states:
"Risk Management: the art of foreseeing hindsight."
Better than trying to define Risk or Risk Management, it is to study and get inspired by Risk Quotes.
Therefore I conclude this Blog with a link to the Blog 'Risk Quotes'
You can place a random quote like this one:
| Random Risk Quote |
 |
on your website or Blog by copying the next javascript code.
<script type="text/javascript" src="http://goo.gl/WdMOK"></script>
Install Instructions
- Copy above JavaScript code (select;CTRL-C).
- Paste (CTRL-V) the code on your webpage or Blog
Blogger: Go to Design Tab, Click on Add a gadget;
Click on 'HTML/Javascript' Gadget
Paste the above code in the gadget and Save.
Related Links
- Risk Quotes
- Riskviews: quotes
- Best Risk Management Quotes
- Death of Risk Management
Posts
LinkedIn Actuary-Info Group
“Getting over a painful experience is much like crossing monkey bars. You have to let go at some point in order to move forward”.
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