risk taking in indian context
TRANSCRIPT
8/17/2019 Risk Taking in Indian Context
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Financial Risk Taking in the
Indian Context
Presentation by: AdeeshMade for HSS 602: Science and Technology in
India
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A success frequently, is as robust as the foundation offailures it is built upon
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The two pillars of Science:●
Money ● Education
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● What is Risk?
- Attribute of an action which has probablegood and bad payoffs● Key words
- Uncertainty- Unpredictability
- Decision Making- Perceied Risk- Reward- !nsurance
● "ypes of Risks
#inancial$%cono&ic' (ealth' )ecurity'"echnological' etc*+ &ay fre,uently oerlap
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● Education, is Risky- A stable &atching. for ability s education is anunsoled proble&- !n the &odern ti&e' the &onetary cost of a good.education is ery high as well
- %en with &atching capability to education' the /ob&arkets are ery non-linear' so education doesn0tnecessarily translate to success and$or satisfaction- "he pri&ary assu&ption of risk of educating byparents isn0t guaranteed
to be paid off* "his &eans'an education risk inolesprobability of cascadingfailure
SCIENCE is Risky
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● Markets, are Risky- "he i&plicit cost of pushing the frontiers of scienceand technology is enor&ous
- Reward s Penalty● "he &odern econo&y is deeply rooted in dealing with
risk* "his is i&portant because funding &odernscience is deeply rooted in econo&ic interests*
● #re,uently' the greatest driers of innoation are war'profiteering 1or both co&bined2and social causes cha&pioned
by the rich 3415asically' trust is risky2
SCIENCE is Risky
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● 6oern&ents7 5est poised to assu&e risk indeeloping and underdeeloped econo&ies' wherethe scientific and econo&ic foundation is still beingbuilt
● Public %ntities 1eg* 5anks27 8ery co&ple9 entities that
can assu&e &ostly deter&inistic risks● Priate !ndiiduals and %ntities as !nestors7 Most
co&&only assu&e risk purely for high profit &arginand shareholder alue &a9i&i:ing
● Priate !ndiiduals and %ntities as non-!nestors7 #ore9a&ple we talked about the parents of a studentwho atte&pts high education
)o who can Assume Risk?
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● !ndigenous )cience' Knowledge and )cientific ðodwas a holistic pro/ect* ;o proper conceptuali:ation ofrisk' risk assess&ent' &anage&ent etc* Risk takingpri&arily associated with trading' e9ploration andprofiteering' &ilitary and con,uest+ not scientific or
technological adance&ent● Pre i&perial s Post i&perial knowledge syste&s
- Dishar&ony between both* Misappropriation by thewestern educated elites. - Post i&perial knowledge chiefly designed by 5ritain
to inculcate repeatability and unifor&ity* ;otconducie to a &odern world beyond the thirdindustrial reolution
● !ndustry dedicated chiefly towards sustenance
Perception of Risk in !ndia
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● <learly' high scientific and technological deelop&entre,uires assu&ption of risk* !f the society is riskaerse' co&petition at global scale not possible* !t0san either$or choice
● ;ehruian !ndia followed the socialist principles in the
chase for rapid industriali:ation● <aeat7 ok in initial deelop&ental stages of nation'
not ok for chasing the enelope● Why not ok?
- ;o accountability- Designed for large infrastructure pro/ects- !noles public consent' this is a co&plicated issue- ;ot enough feedback to learn fro& failure
Managing Risk is !&portant
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“[...]We built great big things, ade ungodlytechnological ad!ances, e"plored the uni!erse, cured
diseases, and we culti!ated the world#s greatest artistsand the world#s greatest econoy. We reached for the
stars, acted li$e en. We aspired to intelligence, wedidn#t belittle it, it didn#t a$e us feel inferior. Wedidn#t identify oursel!es by who we !oted for in ourlast election, and we didn#t ... we didn't scare so
easy .[...]%
&Will McAoy+ ;ewsroo& 1%pisode 32
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● Risk is a double edged sword* !nnoation can andshould be antifragile
● (ow? =earn fro& failures of innoation in financialinstru&entation- Distribution of risk7 %ncourage entrepreneurship
- %&bracing Rapid Application Deelop&ent 1RAD2philosophy in design on innoation itself - >erhauling education syste&s 1)elf =earning')ugata Mitra7 )chool in <loud' etc*2
● )ilicon 8alley cra:e already causing structural
changes in financial risk taking● Urgent need for education of risk assess&ent and
&anage&ent at all leels in all industries
Deelop&ent needs to be Antifragie
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“Sadly, 'ndian entrepreneurs are ore ris$ a!erse
than ()s and 'n!estors%& Anony&ous
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References● 5inswanger' (ans* Attitudes towards ris$: *"periental
+easureent in ural 'ndia.* A&erican ournal of Agricultural%cono&ics+ 3@B
● 6upta' et* al* 'nstitutional *n!ironent for *ntrepreneurship in
*+*. !nternational %ntrepreneurship Manage&ent ournal+ CB3
● Mitra' )ugata7 )an -ids Teach Thesel!es.
https7$$www*youtube*co&$watch?E9RbFGfflCDB * CBB@● "aleb' ;assi&* Antifragile7 Things That /ain 0ro 1isorder * ;ew
Hork7 Rando& (ouse' CB3C
● ;arlikar' ayant 8* The Scientific *dge: The 'ndian Scientist fro(edic to +odern Ties* ;ew Delhi7 Penguin 5ooks' CBBI* Print*