Wednesday, July 1, 2015

Protection Paradox


By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
"We have lost the balance between short-term safety and long-term health.  In outdoor play, risk doesn't mean courting danger, but rather giving kids the freedom to assess their surroundings and make decisions, allowing them to build confidence, develop skills, solve problems and learn limits," said Dr. Mark Tremblay, chief scientific officer of the non-profit ParticipAction, which releases the annual Report Card on Physical Activity for Children and Youth.[1]
The report continues to talk about what it calls “the protection paradox”.  Basically by overprotecting our kids, we are setting them up for greater danger in later life.
I believe there is a direct comparison in many corporate risk management policies.  By not allowing employees to take risks, not only do corporations stifle the creativity of their employees, they also stunt their employee’s ability and flexibility to deal with risk.  Risks, both good risk, and bad risk are a part of the corporate world.  By having too strict risk policies, corporates have “lost the balance between short-term safety and long term health”.  Something to think about.


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