The fundamental of risk is quite clear from this book. Here is an Indian economist describes about risks.
“Stepping out on the road involves the risk of being run over by a BMW or Blueline. Shopping in a market involves the risk of being torn apart by a bomb. One takes risks because the gains are more than commensurate and the existence of risks is no argument for risk aversion and playing safe. There is risk in voting in a new Government too. You never know what it will do. Similarly, globalisation brings risks, both because the economy can no longer be insulated and is susceptible to external shocks and because policy-making loses degrees of freedom.
One loses a little bit of one’s independence, so to speak, a bit like getting married. Why should that be an argument against marrying, stepping onto the road or going shopping? However, the