A Risk is Never a Problem

Enterprises, by definition, take risks. Fortunately, risk can be managed well. The art is to identify and mitigate them. Sounds simple, and according to risk-experts, it is. Many people mix up problems and risks. To be clear, a risk is never a problem. A risk is something that can happen but hasn’t happened yet. And if it does happen, it is a problem and no longer a risk. Moreover, as long it is a risk, you can manage this. Therefore too, it is not a problem. Provided of course you are properly equipped to do so. Here is where an integrated Commodity/Energy Trading and Risk Management (C/ETRM) comes in: Can you afford to let a risk become a problem? The uncertain effects of risks can be both positive and negative. Traditional risk management is based on negative uncertain effects. However, you can also take a mirror image of this view and consider the opportunities that may present itself. Uncertainties can work against you, but they can also help you. When taking this view, the subject of risk management become more appealing. Most enterprises know that risk management is important but may pay lip service to implementing the tools to properly… continue reading

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Source: CTRM Center

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