Talking Risk

Chapter 1

Risk is the probability of an event occurring that could have an adverse or positive impact on your objectives.

Yow pardner, all over the campus I hearing ‘bout risk, risk, risk. What is this risk thing really about?

Whoa!! That’s some big terms boy ... objectives, adverse, impact, probability … break that down man!

OK, let’s look at it this way …. Tell me one of your goals … something you want to accomplish.

Wait … my brother has been saying he want to finish his CFA by December 2020. Can that work?

I don’t really have any major goal right now … I just kinda looking at things for a while….

Hmmm… let me see... he said he may be going on a 6-week mission at the IMF starting the end of November.

Sure, Great … now is there anything that you can think of that may prevent him from completing his studies by that date?

So what would happen if he goes on the mission?

Boy, then mister would miss the exam in December, and he ain’t going finish until March 2021. Those programs funny – you slip you slide.

Excellent!! Now let’s use that information…

He would like to complete his CFA by December 2020 – That’s the objective; He may be assigned to the IMF mission – that’s the probability of an event occurring; If he is assigned to the mission, his end date would be pushed back to March 2021 – that’s the adverse impact on the objective.