All risks are not equal. Risk is subjective.
Risk is a human thing and probability is its logic.
Risk is about asymmetries. There are more than 20 types of financial risks.
Risk manage: use what you don’t see to make decisions. In order to be dealt with, risk needs to be at least partially quantified.
You can get the timing and direction right but miss the severity. Risk happens fast.
Risk transferers:
– Executives getting bonused then bailed out by the public.
– Middle management hiding their incompetence by firing their managers.
– Doctors profiting off iatrogenics.
– Architects impressing other architects.
It’s all about skin in the game.