LONDON, April 27, 2020 /PRNewswire/ -- In the latest issue of World Finance magazine, Kamakura Corporation takes an in-depth look at the current state of the risk management industry and how businesses can put the right preparations in place for when times get tough. In an exclusive article, Marti Zorn, the firm's President and COO, explains the different strategies that businesses and governments can adopt.
"One of the key risks we face today is that after a long period of complacency, a single event often triggers a 'flash crash' or the beginning of a market shift," Zorn writes. "It is usually very difficult to identify the trigger events in advance, though many experts take credit for seeing them after the fact."
Current events like the COVID-19 outbreak demonstrate how difficult it is to anticipate every potential business challenge. However, having robust tools in place can ensure that companies have adequate capital to survive these disruptive situations.
Risk management is the identification, evaluation and decision to avoid, take or hedge the impact and probability of known and unknown events, as well as having the tools to maximise the risk-adjusted return on opportunities. But as Zorn explains, "even the most astute risk manager does not know what the future holds"
Nevertheless, the best risk managers use simulation tools, including Monte Carlo simulations and n-factor models, to identify a full range of possibilities including the so-called "black swan events." It may be impossible to identify every risk ahead of time, but the right risk manager can make sure you are fully prepared when it does arrive.
To find out more about Kamakura Corporation and how your company can better identify upcoming risks, pick up the latest copy of World Finance magazine, available in print, on tablet and online now.
World News Media, the parent company of World Finance, is a leading publisher of quality financial and business magazines, which enjoys a global distribution network that includes subscriber lists of prominent decision-makers around the world.
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SOURCE World News Media