Page 14 - Risk Management in current scenario

is when there are a no future and time stops at present, there is a no
risk. The second is if there is a no objective, there is a no risk because
any uncertainty in future is not to disturb anything.

From a statistical point of view, the objective is an expected value or
mean and risk is the actual deviation or dispersion from the mean value.
Higher the dispersion of the mean, higher is the risk. The dispersion is
represented by the standard deviation. The coefficient of variation is
defined as a ratio of standard deviation over mean is used as one of the
measures of risk as a dispersion with respect to mean. The lower value
of the coefficient of variation indicates relative low risk if two or more
risks are compared.

This concept risk associated with objective may be taken forward to most
famous teachings of Bhagwat Gita, which say that "do your karma and
forget about the result". This has deep roots in the teachings of risk
management of life. It says that you have an objective in life which you
have to achieve for which you are striving hard. So you want to achieve
the mean value represented by the target of life and you work hard to
achieve.

It further says that forget about the result, that is, whatever is the
outcome of the hard work that you have done, do not worry about that,
means if the actual result has statistical dispersion around mean, you
should not worry. If you follow this philosophy, what will happen that
even if there is dispersion and you do not worry, it will reduce the stress,
which is a human most killer disease? So the teaching of Gita has taught
millions of years back about the risk management of life.

Risk Management

To progress in life or in business, we must anticipate future uncertainties
and prepare for the same on the proactive basis now rather than reactive
basis when an event happen. Risk management is about anticipating the

12 | Risk Management in Current Scenario