Quantitative risk measurement as discussed in this book must take its place as a component of standard business practice—a day-in-day-out activity rather than esoteric and left to a coterie of rocket scientists. Risk management must be the responsibility of anyone who contributes to the profit of the firm. Risk tools, good processes, infrastructure, all of these add to prudent business management. In this sense, quantitative risk measurement should be treated just like accounting or market research—an activity and set of tools integral to managing the business.
We need to recognize that managing risk, like managing any aspect of business, is hard. There are no easy answers. Nonetheless I will share one last thought. The task of managing risk is made easier by having a well-planned strategy. A good risk management strategy is simple to state:
Learn about the risks in general; learn about the business and the people
Learn about specific exposures and risks; learn about the details of the portfolio
Manage people, process, organization; focus on group dynamics, the human factor
Implement damage control strategies to minimize the impact when and if disaster strikes