Twelve Factors to Determine When to Take and When to Avoid Risk Reviewed by Momizat on . A Smart Approach to Board Level Risk Management As the economy recovers, companies that cut costs or deferred spending at the bottom of the recession are now lo A Smart Approach to Board Level Risk Management As the economy recovers, companies that cut costs or deferred spending at the bottom of the recession are now lo Rating:
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Twelve Factors to Determine When to Take and When to Avoid Risk

A Smart Approach to Board Level Risk Management

As the economy recovers, companies that cut costs or deferred spending at the bottom of the recession are now looking to reinvest: in hiring, new debt, facilities or equipment, or business acquisitions. How much risk is too much?  This presentation details critical internal and external factors to examine.

Very risk-averse people will freeze if there’s any risk at all; their daredevil cousins will charge ahead regardless. But the probability and consequence for each risk should be considered. We don’t insure against meteor strikes, because the probability is infinitesimally low. We do insure against fire because even though the probability is very low, the consequence is enormous.

“…Whatever one’s attitude about risk, the riskiest thing is not thinking about it.”

Risk managers of large financial portfolios actually quantify probability and consequences in all manner of permutations. If your calculus is rusty, simply noting each probability and each consequence as High, Medium, or Low will be helpful; risks that rate “High/High” are worth special attention.

The National Association of Certified Valuators and Analysts (NACVA) supports the users of business and intangible asset valuation services and financial forensic services, including damages determinations of all kinds and fraud detection and prevention, by training and certifying financial professionals in these disciplines.

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