Cavalcade of Risk #54

If only managing risk were as easy as playing a game, we’d all be experts and life would be safe and predictable. Unfortunately, risk comes in all shapes, colors and sizes, so we must always be diligent in our management of it. But, if we ever need a diversion, the Parker Brothers’ classic is always there.

Health/Medical

• Chicago Tribune blogger Julie Deardorff has a sort of good news, bad news post. Although teenage smoking and drinking seem to be declining, there’s an alarming rise in teen choking risks.
• Andy Brazier, a self employed consultant blogging at his eponymously-named blog, posts on some of the riskier aspects of Britain’s NHS in Errors in Medicine Administration: How Can They Be Minimised?
• Dr. Michael Mountain, blogger and Chiropractic Neurologist, looks at the risks and benefits of spinal decompression.
• Tyler presents Life Insurance Is Critical When You Have Dependants posted at Dividend Money.

Investing

• Silicon Valley Blogger presents Do You Time The Market? Deconstructing Market Timing Strategies posted at The Digerati Life. “The good and bad of market timing. Are you prepared to buy and hold forever?”
• Mark Runta presents Risk or Opportunity - What Do You See? posted at Investing Lessons. “It is about perspective. It is about what you want from life. It is about choice. It is about convincing yourself - is it an opportunity or a risk?”
• Leon Gettler presents Lehman: Is this a Bear Stearns replay? posted at Sox First.
• Jacob presents Accident by construction - why technology and regulations increase risk posted at Early Retirement Extreme. Accidents does not happen by chance (by “accident”). They are constructed, slowly, over time. Little by little tension is added to the system until some previously unconsidered part fails catastrophically and brings the whole thing down.
• Dorian Wales presents The Relation between Age and Portfolio Risk – Counter Intuitive Results posted at The Personal Financier.
• KCLau presents Picking the right Structured Fund posted at KCLau’s Money Tips. “One of the famous rules of investing is — never lose money. There is one kind of investment vehicle that are attractive to investors looking for downside protection, at the same time who would also like to see gains from upside movements in the markets.”
• Super Saver presents Managing Investment Risk posted at My Wealth Builder.

Not Investing (Real Estate, Insurance, etc.)

• NtJS presents Some Advice To a Friend about a recent business proposal he received. “My friend had been hit with a business proposal by some colleagues. It didn’t sound like a terrible deal - no pyramids, or get rich quick deals. The ones who had proposed it had a well thought out plan. They had run the proposal past lawyers and industry professionals and had gotten the thumbs up from everyone. The real details aren’t important here, but there were a couple that set off the alarms in my head.”
• Henry Stern, LUTCF, CBC presents Biting the Hand That Feeds (An Update) posted at InsureBlog. “Just last week, we learned that the MVNHS© had successfully killed off another beneficiary (citizen) via the clever method of denying that “free health care” that we’ve heard so much about. Never fear though, dear Brits…”
• Dan Melson presents Why You Want The Lender to Assume Pricing Risk posted at Searchlight Crusade. “By forcing the lender to assume pricing risk, you are far more likely to end up with a better loan out of the process, because they have to tell you about the real costs and the real rate that they have reason to believe you will qualify for. If they don’t, the difference comes out of their pocket, not yours, whereas in any other pricing scheme, who do you think is going to get stuck for the difference? For this reason, I’ll recommend any guarantee that forces the lender to assume pricing risk over any loan quote that does not.”
• Jason Shafrin presents Mandatory Seat Belt laws posted at Healthcare Economist. It’s Jason’s contention that we shouldn’t have mandatory seat belt laws because it draws enforcement resources from other tasks, which I disagree. I think that if someone were to do a study, they’d find that police rarely stop drivers only because they are not wearing seat belts. It’s usually for something else (speeding, broken lights) and then an additional citation for the lack seat belt use.
• Louise of Colorado Health Insurance Insider writes “What Drives Health Insurance Premiums.” Health care is a necessity. And the health care industry is very aware of that fact. If money is tight, you might forego buying a new car or going out to dinner. But if you’re on kidney dialysis, and taking a handful of medications with every meal, you don’t really have a choice about whether to continue your treatment when the budget is lean.
• Over at the 3Gen blog, Jenna wonders of new grads run an increased risk of job burnout.
• Blogging at ISACA Sacramento, M.P. Schmidt disses federal government efforts at IT risk management.

The next Cavalcade of Risk will be hosted by Colorado Health Insurance Insider on July 2nd, please get your entries in as soon as you can!

(Photo of Risk by kimari)