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Essay / Managerial Finance Case Study - 706
Jesus preaches to a crowd and tells them to heed his words. Jesus then tells a parable of the man who built his house on a foundation of stone and the man who built his house on sand. The gentleman who built his house on rock took the risks into consideration, and while he couldn't plan for every possible scenario, he did consider the risks of building his house on sand rather than on the rock. As the head of his family, he made the decision to build his home in a neighborhood that may not have been as pleasant or desirable, but was safe and had a secure foundation. Likewise, leaders must weigh and balance possible organizational risks. Although some decisions are not easy or popular, the goal is to take precautions when making decisions regarding risk.