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Respectfully, it's not. Choosing a bank is an aspect of risk management, the act of throwing all your money into whatever thing that calls itself a bank and is
by sillybov3456 4y ago
Respectfully, it's not. Choosing a bank is an aspect of risk management, the act of throwing all your money into whatever thing that calls itself a bank and is most convenient is not risk management, it's risky behavior.
Risk management would be asking the question "should I be putting all my eggs in a basket that seems very tied to the tech economy / northern California real estate market / low interest rates?". Diversification would be trying to get the money you use to pay your tech workers invested in something as far away from tech as possible.
- nouveaux 4y agoPutting money in a bank is a form of risk management. A startup can choose to: * Buy expensive office equipment or put it in a bank * Go on a hiring spree or put it in a bank * Acquire another company or put it in a bank * Put money in crypto or put it in a bank Shopping for a bank might mitigate a bit more of your risk. Putting it inside of a bank is low risk compared to the many things you can do with money. Hundreds of thousands of businesses store more than $250k in a bank and for most of them, the largest risk to their business is not their bank.