What Could A Ham And Risk Management Possibly Have In Common?

by Christine Cromarty
RSD Solutions Inc.
Email: info@RSDsolutions.com
Web Site:www.RSDsolutions.com


It was with great delight that I settled down to watch the season premiere of Mad Men yesterday evening.  For those who have not yet become addicted to it, the Mad Men were the men who worked on Madison Avenue in the glamorous advertising business in the 1960's.  Yes there is a great deal of drinking, smoking, sexism and racism highlighted in this drama but there are also so many subtle parallels with our society today.

Although much has changed, many of the issues remain the same.  Yesterday's episode was no exception as in one storyline, a few of the advertising staff decide to stage a pre-Thanksgiving battle between two women in the supermarket over a ham.  They are successful in their attempt to have the story make the news, their client (owner of Sugarberry Ham) increases their media budget and a new advertising byline is created that "Our hams are worth fighting for".  However, all begins to blow up, police become involved and now the integrity of the firm is now at stake.  It is only at this time that Don Draper, a partner in the firm and a principal character in Mad Men, is being made aware of the situation.

How many times have you seen this type of situation occur?  When employees have made decisions which they feel will profit the firm and yet put the whole firm at risk?  Where top management is only brought in after it is too late?   Is it not for this reason, Risk Departments have been created?  Firms of all shapes and sizes need to have a group which can create guidelines and independently assess the wide range of risks which face them.  It is impossible to anticipate all forms and sources of risks and there is always a fear that creativity might be stifled by a Risk Department.  No matter what type of institution you are, it is important to face risks quickly and creatively.

What type of Risk Department do you have??