Tuesday, July 7, 2015

Thoughts on an Ideal World

By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
Let’s suspend reality for a moment and consider a business world (perhaps on a planet far away) where risk is completely measureable and manageable.  In other words, there is no uncertainty and models can predict the future with any desired degree of accuracy.  In such a world what would be the role of risk management?  What would be the role of a manager?  Would there even be a need for managers?

As I have written before, the American author Kurt Vonnegut wrote about such a world in his first novel which was titled Player Piano.  Kurt Vonnegut had the imagination to consider such a world.  Do you as a risk manager?  Assuming you can, does your thinking about such a fantasy world change how you think about the real world of business in which we function?

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