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Reality of a business requires risk management-
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plowboy
Posted 4/2/2010 01:21 (#1146787 - in reply to #1144844)
Subject: ""Risk Management" is not all it's cracked up to be.



Brazilton KS
We, like any business, get paid for three things....hard work, intelligence, and putting capital at risk.  If you can manage to hedge away every possible risk, you are also going to hedge away nearly every profit leaving only the pay to hard work and to intelligence, and most people aren't as intelligent as they think they are when compared to their competition.  That means you are going to be working on very tight, but supposedly "known" margins, which implies you are going to have to have a lot of scale to stay above water.   Not that there's anything wrong with that, but it seems to be a business model which many do not like. 
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