Risk is not a Four-Letter Word

In Italian, the word risk derives from risicare, which means “to dare,” which implies a choice, not a fate. Risk is an economic positive. It is where profits come from. There are five responses when confronted with risk: avoid it, reduce it, transfer it, accept it, or increase it. In the final analysis, a business cannot eliminate risk. Attempting to avoid risk and uncertainty, as with cost-plus pricing or hourly billing, is a self-imposed ceiling on a firm’s earnings. Ed and Ron will discuss the importance of risk from the perspective of individuals, entrepreneurs, project management, society, enterprise, and government.