Organizations continue to face different types of risk in their environments. As a recent development, Risk management has emerged as a 'life-dependancy-kit' as businesses strive to protect themselves from exposures to risks.
Risk has been categorized variously. The various risk types can be categorized broadly as either Financial or Business risk. Financial Risk is the likelihood of inflows from an investment being uncertain (and thus varying). Business risk is a category that carries all other risk types attributed to an organization's existence and activities in the business environment. Operational risk, legal risk,reputation risk, political risk,market risk and credit risk are examples of risk types that can be widely classified as Business risk.
Careers in risk management are 'a hotspot' due to new developments in the markets and the need for risk management to be professionally practiced by dedicated personnel in organizations.
A funny unorthodox quip:
- Real risk was not volatility; Real risk was stupid investment decisions.
~Michael Lewis, The Big Short.
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