Want to Take Risks? Learn to Manage Them First

Want to Take Risks? Learn to Manage Them First: An MBA student once asked me to give her a simple explanation of the "risk management function." After a few minutes of fumbling, I told her that risk management is the process of identifying, prioritizing, and mitigating the impact of unforeseen (and usually negative) events. In other words, it's a form of proactive contingency planning ? either to completely avoid difficult situations, or prepare for them so that any undesirable consequences are lessened.