by Michael Arbow, MBA
Partner, RSD Solutions Inc.
From time to time, I like to look at the “far-side” of downside risk management. Sadly, most of my examples tend to come from litigation prone America, in this case Kings County in the State of Washington.
As the temperatures on the thermometers increase, the call of “Everybody into the pool” is sending shivers down the spines of local government councilors. In 5 years there have been 17 drownings in a county of 1.9 million people (about 1 per 650,000 residents per year); to reduce this number further the Council has passed a by-law making flotation devices mandatory for all swimmers. This is another fine example of a governing body focusing on reducing the cost of downside risk (drowning) while ignoring the far greater reduction in the benefits of upside risk (fun, health, exercise, socialization, future Olympic gold medalist).
Unfortunately such folly is not restricted to elected government officials. When your company or organization looks at risk is only the downside focused on with the exclusion of the upside? The answer may be telling and hold the key to moving your organization forward by freeing up resources.
For more on this story click on the link to the Seattle PI story: http://tinyurl.com/3qjd3yx
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