Risk Management

Today, we talked about the importance of managing risk. Every single enterprise takes risk on different scales; so does every individual. I have always been a risk adverse person my entire life. I believe in the traditional way of living. For example, I put my money in a savings account, buy government bonds, and fix the interest rate on my home with a 30 year mortgage. However, after taking FI 4000 and RMI 3750, I started to realize risk is not necessarily bad. As a matter of fact, it is helpful for our everyday economy. Here is a useful link that helps you to manage risk in your own surrounding: http://www.hse.gov.uk/risk/index.htm

Risk exists everywhere. For example, there is risk on campus, at the office, and on the highway. We can’t ignore risk. Instead, we need to diversify the risk and learn how to manage risk efficiently. Reducing the cost of risk is the goal. Utilizing risk to create safer results and higher profit is our target.