AndrewFlannigan
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A very long time ago, I worked with a chap who'd been one of Arnie Weinstock's "bright young management accountants".This is the crux of it I agree. Of course companies generally don't understand and di risk management at all well, in particular not realising that the cost associated with a risk actualising can be put onto the balance sheet if they do it right, in the same way as opportunity -= "goodwill" - is recorded as an asset.
He was fond of quoting some of Weinstock's little gems, one of which was, allegedly, "if you put a lie on the balance sheet, you'd better remember what the truth was." Apparently this came down to making sure that the balance sheet only showed what you could sell for cash and how much it was worth if you did so. Given Weinstock's track record, that seems to me like advice to follow.
