Module 04 Discussion – Measuring Risk

How can we measure something that we don’t know? Or has not happened? Or has happened but we do not know that it has happened? To paraphrase a quote by Donald Rumsfeld, “there are known knowns, known unknowns, and unknown unknowns.” It can be argued that the most significant risks a company faces are the unknown unknowns.

For your initial post discuss, with examples, “unknown unknowns” as they relate to a company’s credit risks.

For your subsequent post(s) discuss, with examples, “unknown unknowns” as they relate to a company’s market risks.