The secret of many businesses, including some in finance, was that certain risks are not explicitly priced (and paid for). These businesses can become uneconomic once these are identified.Some businesses have a competitive advantage by not explicitly paying for these risks, but in the end someone pays up, eg; moral hazard/taxpayers, access to water, food, health. air quality etc.Contingencies also exist in many businesses - liquidity, natural hedges are ways of dealing with risk.
Last edited by dweeb
on April 12th, 2014, 10:00 pm, edited 1 time in total.