Buying Into Risk
Investors love risk, managers dislike it. Risk provides an alternative to making money by the sweat of your brow. Putting money into a risky situation is what makes profit. For those who doubt this, take a look at the insurance industry – a business wholly devoted to the assessment and conversion of risk to financial premium. In Singapore alone, about 35,000 people (almost 2% of the workforce) are either wholly or partly employed in this industry. The assets of the industry in Singapore grew by more than 50% in the two years of the Asian financial crisis to S$31 billion. Over the last five years the annual growth rate has
averaged 16%, reaching revenues of almost S$8 billion in 1998. There is a lot of money in risk.
Posted by edgar on 18/04/00 at 01:48 PM | Categories: Risk & Uncertainty | Permalink