*/By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc./*
*/Follow Rick Nason on Twitter/* [1]
*/Follow RSD Solutions on Twitter/* [2]
Too often we forget that risk management should be about choices. As
consultants we often get asked, or tasked, to answer a question
unambiguously. If the issue is of any consequence whatsoever then it is
highly unlikely that there is "an" answer. There will almost always be
a choice of answers and as a result a set of choices that management must
decide from.
Good risk management identifies the different choices and in as clear a
manner as possible lays out the pros, cons and possible implications of
each. At the end a human must still decide amongst the choices. There is
almost never one optimal choice. Remember that the only "law" of risk
management is that "the only perfect hedge is in a Japanese
Garden".Choices
[1] https://twitter.com/rnason_dal
[2] https://twitter.com/rsdsolutions
