We define risk as the possibility of the occurrence of an event or condition which, if it occurs, would negatively impact our well-being. We scan risks in order to try to avoid or mitigate such risks. Those who have wealth care the most because they have the most assets to lose.
The first thing to remember is risk cannot be eliminated, only managed or hedged.
In a static zero-sum system, one man's risk is another man's opportunity. You squeeze one side of a balloon, it will expand on other sides. However, the balloon may burst or leak, so such risks are not improbable. In a dynamic environment, the balloon is ever expanding, and any action by one party could affect not only other parties, but also the balloon (system as a whole) itself.
There are always costs to hedging risks, and if you choose the wrong hedge, you could lose even more when an unexpected event occurs.
The World Economic Forum's Global Risk Report 2024 (published last January), based on a global risk perception survey of 1,500 experts, was remarkably comprehensive in laying out the fears of a rapidly accelerating technologically changing world beset by climate warming and conflict. In the short-term (two years), the top risks ranked by severity were misinformation and disinformation, extreme weather events, societal polarization, cyber security and inter-state armed conflict.
Over a ten-year horizon, top risks include extreme weather events, critical change in Earth systems, biodiversity loss and ecosystem collapse, natural resource shortage and misinformation and disinformation.
هذه القصة مأخوذة من طبعة January 05, 2025 من The Statesman.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة January 05, 2025 من The Statesman.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Uphill task ahead for Seoul
The impending leadership changes in South Korea and the United States have cast a cloud of uncertainty over the future of Seoul-Washington relations.
Trump's way
Donald Trump's return to the presidency is nothing short of historic, marking a political comeback that defied all odds.
Basanti murder: 2 arrested for minor girl's death
Two individuals, Buddhadeb Bhattacharya and Dipen Kayal were arrested in connection with the murder and possible rape of a minor girl in South 24-Parganas' Basanti area.
British prime minister says the killing of 3 girls must lead to ‘fundamental change'
Prime Minister Keir Starmer said Tuesday that the killing of three girls at a Taylor Swift-themed dance class must lead to \"fundamental change\" in how the British state protects citizens and a reckoning with new threats from violent individuals whose mix of motivations test the traditional definition of terrorism.
India Welcomes Neutral Expert's Ruling on Indus Water Treaty
India on Tuesday welcomed the ruling of the World Bank-appointed neutral expert that he is competent to address certain issues related to projects under the Indus Water Treaty, in what is being seen as a setback to Pakistan.
The true cost of what we buy
Every year, India sees the launch of over 1,000 new retail brands, adding to millions of brands globally.
Trump 2.0 begins with slew of executive orders
US President Donald Trump repealed dozens of former President Joe Biden's actions, began his immigration crackdown, withdrew the USA from the Paris climate accords, and pardoned hundreds of people for their roles in the 6 January 2021 attack on the US Capitol, as he began the first day of his new term with a flurry of executive orders.
Water wars
The Pacific Institute has shown that while interstate water conflicts are increasingly less likely, there appears to be a growing risk of subnational conflicts among water users, regions, ethnic groups and competing economic interests.Data from the Water Conflict Chronology shows these intrastate conflicts to be a larger component of all water disputes, and that the traditional international mechanisms for addressing them, such as bilateral or multilateral treaties, are not as effective
ISL: Bengaluru FC Take On Struggling Odisha FC, Aim To Reignite Title Push
A chance to return to the second spot on the Indian Super League (ISL) points table beckons Bengaluru FC as they host Odisha FC at the Sree Kanteerava Stadium on Wednesday.
WEF 2025: Gita Gopinath Says India Needs More Reforms to Become $10 Trillion Economy
India continues to be the world's fastest-growing major economy, but the country will need much bigger structural reforms to further accelerate growth for achieving the goal of becoming a $10 trillion developed economy by 2047, according to IMF Deputy Managing Director Gita Gopinath.