Risk at the roots
Peter Bernstein
The dominance of rational models of human behaviour has led to the notion that some form of quantification of variables can guarantee safety against risk. The view expressed here is both more elegant and sublimely logical. Drawing inspiration from Pascal, Bernoulli and Gould, Bernstein argues that risk is not only inevitable but valuable and that a predictable world would be the most dangerous of all.
Business management is a process rooted in the future. We do not know the future. Then how in the world can we make decisions? In this article I look...