In a bureaucracy, it’s taken for granted that any risk – like any flesh-eating bacteria – is a bad thing. But in a fast-paced environment in which decisions must be made in rapid-fire, risk is not only a constant, it’s a primary ingredient to success. So too in your daily life, in which each decision – Do I drive to work or take the train? Do I have a cigarette or use the patch? – ultimately comes down to a weighing of risks versus potential rewards. Dan Borge takes the sophisticated risk-management theories employed by some of the world’s smartest companies and boils them down to easy-to-grasp principles that can be used by any business or individual. Some books must be read carefully in order to be appreciated, and this is certainly one of them. Risk management is complex, and despite Borge’s skill at getting to the heart of the matter, you’ll find yourself mulling over the intricacies of each page of this finely wrought book. getAbstract recommends this book to all senior executives, and to any professionals with the potential to join those ranks – provided they make the right decisions.
In this summary, you will learn
- How to deal with risk
- Why risk management begins with defining the bad outcome you wish to avoid
- Why doing nothing is very risky behavior
About the Author
Dan Borge, Ph.D., worked for Bankers Trust for 20 years and was the architect of the renowned RAROC risk-management system. Borge was a managing director and partner. Previously, he was an aeronautical engineer who designed airplanes at Boeing. He earned his doctorate in finance from Harvard Business School.