“Risk management is not about predicting the future, it’s about preparing for it.” – Anonymous
Behavioral science has shown us that we are not inherently suited to manage risks in the modern business world. Gut instincts and past personal experience are not enough as the complexity of both Main and Wall Street has increased tremendously.
Prior to my MS in Enterprise Risk Management, if you were to ask me, “What is risk?” I would have responded that risk is the downside of an event or action (e.g., the risk of insuring a home in a hurricane-ridden area). However, risk is really about uncertainty – both on the upside and downside.
Now I like bullet points a lot, so you’ll see my tendency to “bold and bullet” through my website (I hope this helps you with recall).
So what are the different types of risks?
- Market Risk
- Credit Risk
- Operational Risk
- Business and Strategic Risks
Carlo's Notes 