IT'S ALL ABOUT RISK

Some fifteen years ago I walked into a London office as a young banking trainee and my first boss, one of these seasoned and arrogant investment bankers, gave me only a few moments of his expensive time to tell me: “It’s all about one thing, risk”.

And how right he was. My journey across the globe was in essence a quest to strike the right balance between risk and reward, each time hoping a new equilibrium could help me move forward. Playing safe when you need to, roll the dice when you think you can. From the relative safety of investment banking to working with promising early stage companies, each time trying to find the right balance.

Capitalism in itself is a long historic journey where the participants always had to manage risk during their pursuit of wealth. From that perspective we're no different from the Dutch who settled Manhattan in the 17th century, only today the boundaries are no longer geographical. But the tools we use today to manage uncertainty are no different: sales techniques, legal documents, currency hedging, technology, insurance; they all have been around for ages.

This week I am proud to host a group of contributors who will update you on the state of affairs in their area of expertise. Each of them has assumed a measure of risk and is able to talk about an aspect of it. Marketing, sales, law, technology, entrepreneurship, it’s all capitalism, and it’s all about risk.

GENERAL BUSINESS

There's nothing like the confluence of politics and markets. Political Calculations has spent some time looking at Air America's viability as a business. Read it and draw your conclusions.

Craig at Lead and Gold argues that strategy may be more important to business than to a military general.

Now that we have 'budget airlines' and 'budget phones' says Interim Thoughts, are we witnessing the emergence of a parallel budget economy?

Pitiful is the capitalist who submits to the stupidity of others without a fight, says Goobage.

Coyoteblog looks at the recent economics study by a couple of business school professors and draws some conclusions about trading strategy and the NFL draft.

FINANCE, INVESTING AND COMMODITIES

Want to mitigate your risk when investing in media companies? To help you, The Media Stock Blog has a compilation of the best blogs and websites for investors interested in media and entertainment stocks.

Why is money in video-games never referred to as 'money' and how comes it's often accepted as a global currency, asks Multiple Mentality. If you have the answer, go here.

Ego reports that the price of tungsten metal has increased, and while China plays a dominant role in this market, North American companies could be back in business. Go long on tungsten is the message I guess.

THE LARGER ECONOMY

Timing your trip to the gas station these days is a form of advanced risk management too. However, is the surge in oil prices a result of increased demand or inflation, asks Mover Mike?

The Interested Participant notes that even if overseas economies are starting to prosper, the US remains a more desirable place to many living overseas. As you can see from the 17th century painting above, that has always been the case.

The Big Picture has one of the gloomier pictures this week, arguing that the post-bubble expansion is about to end. And he may indeed have a point.

Last week's COTC host, Brian Gongol points out that the world risks running out of food and offers a solution.

Hamster Motor suggests that barter economies have contributed to the misogyny of primitive cultures. A discussion ensued.

Patri Friedman at Catallarchy turns a negative article about modern consumption on its head and concludes that America is a rich nation.

TECHNOLOGY

Now here's a risk you can't run: having your site being banned by Google. It happens from time to time, and Blog Business World has some useful recommendations in case it happens to you.

The Mobile Technology Weblog looks at why developing economies often leapfrog a stage in technology deployment. Leapfrogging: another way to manage risk.

ENTREPRENEURSHIP

A new age of transportation is upon us, argues Jeff Cornwall of The Entrepreneurial Mind. And yes, that will create lots of entrepreneurial opportunities.

Lip-Sticking rounds up some solid advice from women entrepreneurs.

PEOPLE

Transient human resources pose a risk too. This CTO raises an important issue: How does a leader ensures his legacy if he leaves his company?

Talking Story has been busy debunking some management myths, this week arguing why managers shouldn't know everything.

When it comes to employee bargaining power, Half Sigma argues why there should be some government regulation. Yes, governments help neutralize risks, but in doing so create that other famous business impediment: regulatory risk.

The BusinessPundit points out that with the increasing number of women in leadership positions we may see more egalitarian power structures in business.

THE LAW

The ever present risk of lawsuits. The (Legal) Underground looks at obesity lawsuits and wonders if threatened legal action against fast-food chains and restaurants was nothing but a hoax.

Managing the Business of Law has three key criteria for making the hiring of a lawyer a success.

The Conglomerate argues that strong fiduciary duty laws are necessary to foster entrepreneurship. It also looks at the interesting assumption that common law systems offer minority investors more protections than civil law systems.

SALES & MARKETING

Although he doesn't think drug marketing is all that bad, Galen's Log argues why he can do without drug reps.

Marketing eYe discusses how you can leverage trends to sell more products.

The team at Modern Marketing looks at a new model of marketing, describing it as a vast satellite dish scanning the marketplace for issues and conversations.

Miss O'Hara is deeply annoyed with GM and its inability to get things right. And slapping the GM label on every vehicle won't do it any good in the long run.

Reduce market risk. TopLineCreators tells us how to boost customer loyalty.

Mitigating sales risk? Ticket sales are crucial says Pro Wrestling Impact. It gets people in the door.

How should companies deal with public online criticism? It depends if you're large or small, says pc4media.

GOVERNMENT

The discussion about a 'flat tax', a great remover of uncertainty, has been gaining momentum over the past few months. The Skeptical Optimist explains why even this tax is still progressive.

Here's a disingenuous way to manage your risk: getting subsidies. Mad Anthony takes a look at sugar subsidies.

Social Security reform: shifting retirement risk from the public to the private sector. The AARP has come up with some suggestions to keep Social Security solvent and Will Franklin of WILLisms grades the nine-point effort and isn't very happy.

BUSINESS BLOGGING

Is there a risk that your business lacks exposure? Matt Rosenberg of BlogConsultingPro has some good advice on what to do and what not to do if you set up a business blog.

The Montreal region has been doing very well in attracting international businesses, says Barry Welford of The Other Bloke's Blog.

Tax Updates says that the proliferation of computer technology has enabled the mind-numbing complexity of the tax law.

Business Promos has lots of promotional products and ideas and is updated regularly.

And last but not least, a new business blog aptly named The Business of Better. Their aim: applying operations intelligence to reduce business risk.

*****

And that's it. A big thanks to Jay Solo who is the great organizer behind the Carnival of the Capitalists, I admire his patience in re-scheduling the weekly event whenever that is necessary.

Next week the party is hosted over at Incite.