Resolutions

*/By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc./*

*/Follow us on Twitter/* [1]

It is the start of another year, and that means for many people another time
to make – and break – New Year's Resolutions.   Almost always
resolutions are based on habits – and habits – despite what the self-help
section of the bookstore would have us believe are hard to break.  Habits
are in part what make us human.

Corporations per se do not make New Year's resolutions, but they do set
goals and make yearly plans.  More so many corporations take this time of
year to update their corporate mission statements.  Increasingly a corporate
mission statement includes something about risk – particularly for
financial institutions. 

Risk objectives however are like New Year's Resolutions.  Risk arises
because business takes place in the realm of humans.  Thus, risk in part is
based on habit, and corporate habits, just like personal habits are hard to
change.

Have you kept your New Year's Resolutions so far?  Has your company kept
up with their risk practices for the year so far?


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