One of the most devastating events to happen to our country was the Great Depression. Almost everything went under, lower than it has ever been before—and for longer. It all started with Black Tuesday, October 29, 1929—the day the United States stock market crashed. But it didn't just affect the United States; it affected the entire world because of international trade and other related markets. It was truly a devastating time for the world.

Think of how many companies and businesses failed. Those were people's dreams for success, and they had to fold and move on, if they could. Because of the depression, there must have been lots of business information that wasn't properly taken care of or properly disposed of—especially for the banks. It makes you wonder what would have been different if the businesses back then had risk management. Could they have protected themselves just a little bit longer? Maybe not, but it is worth a thought.

In today's economical, business-savvy world, risk management is a necessity. To be a truly successful business, risk management is crucial to progression. Within the confines of risk management, there are four methods to identifying risk.

1. Objectives-based
2. Scenario-based
3. Taxonomy-based
4. Common-risk checking

One pretty common that is seen in the business world is avoidance of risk. This may seem like a great idea—just avoid every risk out there, and you'll be just fine. This is like a person refusing to leave their house because they might get hit by a car or a bolt of lightning. The truth is, by avoiding risk, you avoid opportunity. You avoid new experiences, profit, and gain. Just as it is with life, it is with business. It is important to find that happy medium. Don't take too many risks, but take enough to gain a profit.

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