The Redbird Risk Management Challenge is comprised of four quarters, each representing a 24 hour period that begins after lunch and closes before lunch on the following day. Your team is asked to form a corporation that will operate in a risky environment – one in which potential losses will occur four times each quarter.
The frequency of occurrence and the severity of a loss if it does occur, are based on probabilities – no one knows what will happen each quarter – not even the instructors.
You and your team members are asked to assume the role of the chief risk officer (CRO) for your corporation, essentially forming a management team that is charged with generating revenues and protecting the corporation’s assets.
Your success will be based upon
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Your ability to correctly assess your risk environment
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Your ability to design a strategic and efficient risk management strategy
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Your ability to excel in revenue production opportunities and
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Luck; Because no matter how well you design your risk management strategies, the probabilistic nature of the risky environment will leave you with no guarantees. However, a solid risk management strategy gives you the best chance of thriving in this uncertain environment.