Discover and read the best of Twitter Threads about #risk_management
Most recents (3)
#Risk_Management: Seismologists warn that Istanbul (16 million inhabitants) is doomed to suffer major earthquakes (the last time in 1999). We deal with a "known unknown", when risks are on the horizon but not yet on the radar to predict escalation. The recent earthquakes⤵️
caused $34 billion worth of economic losses in Turkey and more than 50,000 deaths in total in Syria. To mitigate the consequences of a natural disaster that will hit Istanbul, the authorities and the population are working on 100,000 seismic resilience assessments of buildings.⤵️
This is better than nothing, but with a highly seismic environment, the Turkish authorities overlooked the need to develop a powerful audit of the old and new civil infrastructure. It seems that the disaster preparedness of state agencies and the population should be reviewed.
#Risk_Management: The death of at least 153 people in Seoul is a vivid example of the failure of law enforcement agencies to prevent a risk. Crowd control was ineffective or even absent. As a result, the uncontrolled mountain of the masses began to crush those who could not⤵️
escape. However, the question is what is behind this human negligence and error? In my opinion, there are several factors that led to this: 1) lack of previous similar events (no possibility of lessons learned); 2) the biases of the authorities and the people regarding the⤵️
risks to life due to massive concentrations in the street, which, unlike cases in stadiums, clubs, etc. are very rare; 3) underestimation of post-pandemic social behavior. The investigation will certainly find a culprit, but this tragedy looks like a “system failure”.
1/ Risk is the possibility of losing money in an investment. We can manage risk in our investments once we understand what it is and what kinds of risk there is around investing. Often just understanding the
risks helps people better understand how they want to invest.
risks helps people better understand how they want to invest.
2/ I always use an expression of, “Manage the risks, and the rewards will take care of themselves”. I think I adapted this from something Warren Buffet once said. No truer words have been spoken. You can't make money unless you understand all the risks and how to mitigate them.
