The problem with risks management is that investors are human. It is easy to focus on risks after this financial crisis.
However, when there is another bull market, traders and financial institutions will slowly increase their risks without even realizing about it. As it gets easier and easier to make money, it starts getting harder and harder to imagine the possible risks, especially from events that never occurred in the past. Greed will run its course again.
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The problem with risks management is that investors are human. It is easy to focus on risks after this financial crisis.
Aug 12 21:52 pm
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All Comments by BrianZach »Ranting About Risk [View article]
However, when there is another bull market, traders and financial institutions will slowly increase their risks without even realizing about it. As it gets easier and easier to make money, it starts getting harder and harder to imagine the possible risks, especially from events that never occurred in the past. Greed will run its course again.