Quantitative finance collector
C++ Matlab VBA/Excel Java Mathematica R/Splus Net Code Site Other
May 19

Eight rules a risk manager must remember

Posted by abiao at 14:33 | Others | Comments(58) | Reads(9382)
Unlike launching rocket, managing risk is a combination of art and science that should incorporate a number of fundamental characteristics. This post is by no means another ex post analysis of the reasons of current credit crisis, instead, it is about eight simple while crucial rules a risk manager or risk analyst must keep in mind (print out and post it on your PC). Sources are from http://www.geocities.com/mrmelchi/rule.htm and http://nasdaq.riskgrades.com/clients/nasdaq/edu_course.cgi?href=Module4-L2.html.

1.There is no return without risk. Rewards go to those who take risks.
2. Be transparent. Risk should be fully understood.
3. Seek experience. Risk is measured and managed by people, not mathematical models.
4. Know what you don't know. Question the assumptions you make.
5. Communicate. Risk should be discussed openly.
6. Diversify. Multiple risks will produce more consistent rewards.
7. Show discipline. A consistent and rigorous approach will beat a constantly changing strategy.
8. Use common sense. It is better to be approximately right, than to be precisely wrong.

Open in new window

Open in new window
Open in new window
Open in new window
Open in new window

Tags: ,
I wrote on my post-it note already, nice.
Stump Removal Email Homepage
Printed and taped right nest to my computer:)
Lawn Pro Corpus Email Homepage
These tips could sometimes also be applied to every day life. Is cray how common sense is almost not so common sometimes
Little Rock tree cutting Homepage
Great tips - these remind me of what I learned in finance classes.
thank you
This steps are crucial. As a project manager in a fortune 500 company I whole hardheartedly believe that risk management is one of the most important and oft overlooked aspects of project planning.
Tree Service OFallon Homepage
I'm a new business owner and I'm finding that these are a great set of principles to keep in mind througout my decision making.
Bug Bros Hutchinson Homepage
Thanks for these tips! Can't wait to share with my team.
invest stocks Homepage
Discipline should always be the very first thing to everything that you want to be or you want to achieve.
Top-of-the-line weblogs I've come across in a while.
my singing monsters hack
samuelddarden Email
You completed a few fine points there. pixelmon exp share
Burbank Lawn Mowing Email Homepage
Great tips to share with my team
lawn mowing service Homepage
Communication is always key
Buffalo NY dumpster rental Homepage
These are rules that ever kind of manager should keep in mind. I personally feel that transparency is one of the most important, yet oft overlooked rules of risk management.
Newark Sealcoating Homepage
Discipline and common sense are definitely the most important of these rules. Without out these all else would become obsolete.
Pages: 1/4 First page 1 2 3 4 Next page Final page
Add a comment
Enable HTML
Enable UBB
Enable Emots
Nickname   Password   Optional
Site URI   Email   [Register]