Manage Your Risk or It Will Manage You

Yeah,Risk Management is the most risky part of ones career and life.I would like to learn more.

I would like to know how Bernie and Lenny get on, their attitude is commendable, as is Doug's faith in them. However all that has been demonstrated so far is their ability to lose money.

What is the purpose of this post? Could you explain more clearly what bankruptcies have to do with an engineering career ?

Sooooo..filing for bankruptcy is risk management, right? Of course this is true, but are there other ways to manage risk?

Actually, filing backruptcy can be a mitigation in risk management.

Other ways would be controls and triggers set into place prior to avoid it.

And in risk management theres a technique call RAAT,

R Respond (mitigate); This would happen to an unexpect issue

A Accept; Basically sure, I'll take that risk, if it occurs see above

A Avoid; Don't attempt

T Transfer; give someone who think they can handle it, whether do to more experience or resources

I've read that Abraham Lincoln went bankrupt 5 times and then became president.

Seems to be selling something. Maybe speaking engagements "don't be discouraged". Maybe risk management advice "don't do what I did". I'll bet this blog or versions of it are on file at a variety of "professional" sites. Maybe I'm a cynic.

If you are really interested in the art of risk management look into the books, magazines and articles written for and about the equity or commodity trader. Risk management, financially sound money management principles and most importantly the psychology of managing risk are all analyzed. Winning and losing are thoroughly discussed in order to keep a person engaged in this type of activity (or livelyhood) on an even keel. One thing in baseball is that an elite player only needs to get a hit one out of every three times at bat, that's only 33% (nowheres near perfect). Whatever your profession, you don't need to be perfect all of the time. I'm an engineer that has been trading about thirty years part time and when I retire (about a year) it will be full time. Even if I trade only 50%, as long as I exit losing trades quickly, not become emotionally involved and not get greedy with winners... I win. Good luck on your endeavors.

Dr.Doug,

Passion and confidence- the two major traits of greatness. The two stories of lost ventures by two great players, show that they have indisciminently invested their hard earned resources. That is some thing connected to poor advisers or poor foresightedness. To be great as a performer or as an achiever is possible by tireless efforts or by in born talents. The issue is connected to over ambitious pursuits, that while investing for an alternate future one should have multitudes of options and play safe with resources, at safe risk level. Many people even after seasons of performance carry on with their earning popularity like cricket stars as commentators, film stars as T.V and so on.

THE VERY CHALLENGE OF LIFE RELYS ON HOW WELL ONE PLAN AND PLAY WITH SUDDEN MADE FORTUNES. THE MAIN DRIVERS ARE WISDOM, ALTERNATE PARELLEL OPTIONS, CONTENTMENT AND NOT THE LEAST- GOOD ADVISERS/ possibly the spouses?

Milo

GA Only those who have been there know that you can never totally assess present or future risk whereas CI is the hedge that keeps you ahead of the curve. There is no such thing as status quo - you are either growing or dying (and don't know it yet)!

I do not believe it is a binary event. By doing one, you are doing the other.

Dr Doug