Everything You Need to Know About Risk
It’s not often that an academic research paper makes you laugh out loud, but that’s exactly what happened when I found this Easter egg inside of 150 Risks in Finance: An Alphabetical List of Definitions and Examples:
They appear to have a good sense of humor at the University of Otago. But they also know their risks, so I recommend you keep that link on hand as a handy reference guide.
There are also some exercises at the end where they propose scenarios and invite you to identify the inherent risks. I had fun reading those and figured it might be worthwhile to apply the framework to what we do…
Scenario: You have the opportunity to acquire a majority stake in a small business run by its retiring founder who says the business is in great shape. What risks do you face?
Let’s take them alphabetically…
I’ll stop there, but you get the point. Why do we do what we do again? Have a great weekend.
– By Tim Hanson
