Monday, February 21, 2011

Studying Risk

by Rick Nason, PhD, CFA

Partner, RSD Solutions Inc

www.rsdsolutions.com

info@rsdsolutions.com 

 

As a professor I get to observe students and their studying habits all of the time.  One of the more interesting traits that comes across is the diligence with which students study the parts of the material that they already know, but almost completely ignore material which they do not know as well – or do not understand at all. 

Is this a human trait?  Do we naturally go to the aspects or practices that we know – over the aspects that we know we should know better?  Is this your risk department – sticking to the tools and techniques that were useful twenty years ago, but which admittedly are past their prime?  Is the unwillingness to learn new methodologies an inborn trait?  Is this smart?  Is this smart risk management?

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