Page 163 - Risk Management in current scenario

that were not well read by the people/management. There are many
other examples in the history proving that extreme events do not occur
in isolation without warning signals. The warning signals may come from
many sources, in today's world global warming is impacting the weather
conditions world round is a signal of the possible debacle that may be
sitting in store should not be taken as extreme events, if occur.

The information available in the world at a point of time, if analyzed
properly, may give an indication of the tomorrow's debacle. The Efficient
market hypothesis developed in the 1960s in financial economics states
that asset prices fully reflect all available information. A direct implication
is that it is impossible to "beat the market" consistently on a risk-adjusted
basis since market prices should only react to new information.

Similar to the stock price, all data available in the world till today carry
all the information about the possible tomorrow's debacle. Such
information is in the advanced stage of development may be observed
in the five fundamental building blocks of our existence. These five
building blocks are Earth (Birth), Air (Life), Water (Growth), Space
(Purpose) and Fire (Death).

These five building blocks of existence are the key and information about
these may act as a key indicator of any untoward incidence that may
happen tomorrow. The "Earth" is related to agriculture, useful and
precious mineral deposits, petroleum output, etc. It is also related to its
water deposits essential for life, it's also related to destruction through
the earthquake and volcanic eruption etc.

The second components, "Air" is related to life for breathing as a key
component for survival for human and plants for photosynthesis; extreme
pollution is linked to the destruction of mankind, the extreme wind is
related to destruction through tornado type events.

The third component is "Water", again one of the key survival

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