Tuesday, February 1, 2011

127 Hours. Risk management is up for an Oscar.

by Michael Arbow MBA

Partner, RSD Solutions Inc.

www.rsdsolutions.com

info@rsdsolutions.com

 

Recently my daughter and I (both avid movie goers) went and saw the Oscar nominated movie 127 Hours. This true story, retold by director Danny Boyle and with a stunning performance by James Franco, is about s mountain climber becoming trapped under a boulder while canyoneering alone in Utah.  Of course the trapped situation becomes a metaphor and the foundation for which the movie and the thoughts and reflections of the climber are based. So you are wondering – where does risk management fit into this? 

Franco plays a young engineer in peak physical shape, equipped with all the best equipment and hiking in an area he has been exploring since childhood. Does this sound familiar: brilliant minds with lots of financial resources using the most sophisticated technology and algorithms working in a sector they have “played” in for decades? But the engineer made one vital mistake; his over confidence in his abilities – he was always the person doing the rescuing – and this blinded him to the possibility of being the rescued. Is this the case in your organization, where being surrounded by resources and years of profitability you live in a comfort zone, never realizing or believing that a simple pivotal event will occur and lead to disaster? 

There are a few other risk management lessons in this excellent film but I don’t want to give the entire plot away.     

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