by Michael Arbow, MBA
Partner, RSD Solutions Inc.
www.RSDsolutions.com
info@RSDsolutions.com
It was with interest that I read “Can a playground be too safe” which has it all when it comes to counter-intuitive risk management and can so easily be translated from the playground to the boardroom (the big person’s playground?). First, as playground surfaces become “softer”, children (and parents) are over-perceiving the safety of the surfaces and thus taking greater risk at play and experiencing just as many injuries as paved or grassed surfaces (this risk phenomena is call homeostasis). Second, as government’s worry about litigation and medical bills, playground equipment is getting lower to the ground and platforms tend to be railed in. This reduction of risk according to critics “may stunt emotional development, leaving children with anxieties and fears that are ultimately worse than a broken bone.”
Arguably what we learn in the playground ultimately becomes part of our adult self. Looking at the way some firms handle risks we see the safe playground move to the boardroom. Companies develop risk management systems that staff trusts emphatically with dire results as they push the envelope thinking they are protected from downside risk. In addition to this companies may develop risk programs that reduce downside risk for the quarter but at the cost of reducing the long term profitability and competitiveness of the firm.
For more on this subject follow the link to the New York Times article “Can a Playground be too Safe”:
http://tinyurl.com/3baekhe
