The New Landscape of Risk
Why then are we suddenly asking our managers to pursue risk? It is not that the manager’s job in the new economy has changed, and risk of itself suddenly brings automatic rewards. It doesn’t. We are as prone today to loss through folly, fraud and failed predictions as we ever have been – indeed, in these volatile times, some would say more prone. We desperately need sound and prudent management of the risks we are pursuing – and that means risk aversion on a scale to balance the risk pursuance of the markets.