Operational Risk
Categories: Insurance, Company Management
Investing in a company that makes complex things fast and cheap like a low-end politician? Then you have this risk.
If the windshield wiper company can’t make at least 12,000 wipers a month, they aren’t running profitably. So how do they make 12,000 for $2 each, their cost? Tons of little things done right. One banana peel slip on the floor and there’s a lawsuit, and the first lawyer meeting wipes out pretty much all profits for like...ever.
See: Operations Management. See: Operational Target.