by Michael Arbow MBA
Partner, RSD Solutions Inc.
I and many other Canadians have fond winter memories of taking the sled or toboggan to the nearest hill and spending hours sledding. As we became older we revisited our youth by taking the next generation sledding. At the end of the day’s activities we would return home cold, bruised and laughing and while we waited for hot chocolate we would recall some of the great wipe-outs and “air” that we were able to catch that afternoon. So what does this have to do with risk management you ask? Well in the US state of New Jersey “slopes behind ropes” are starting to appear as the town and municipal governments fear potential law suits and thus they are banning sledding. They are doing this to protect themselves from downside risk.
This is a good example of where protecting or eliminating downside risk (potential law suit) is being done at the cost of upside risk (exercise, fun, fond memories, social bonding). Some organizations are obsessive about eliminating downside risk, the cost of which is stifled creativity, reduced market share gain and even low employee moral as their initiatives are squashed. Does your organization put too much effort on downside risk management at the expense of the upside? It can be just as detrimental to your business as having too little.
To read the nj.com article follow the link:
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