Friday, August 14, 2015

Constructive Debate

By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
Got an email from a former student today lamenting the rise of “people pleasing versus constructive thought”.  Having constructive thought is tough because it frequently does (and should) evolve into constructive debate. 
A constructive debate involves tension between two or more thoughts on how to make things better.  However, in the age of “every kid gets a Valentine”, tension is frowned upon.  Instead a people pleasing solution is often the quickly sought after desired solution.  (Note: people pleasing solutions are rarely if ever people maximizing solutions.)  
Risk management is not immune to the lack of constructive debate.  Too many of the instances I see involve a political solution (read people pleasing) to a risk issue than a solution process that involved constructive thought and debate.

While the lack of constructive debate is an issue for risk managers and risk management stakeholder to consider, there is another risk management issue here.  That risk issue is the overall lack of debate, and the lack of tension and the lack of constructive thought that goes into business decisions.  Perhaps corporate political correctness is itself a risk management issue – right up there with cyber-security, talent risk, supply chain risk and financial risk.  Instead of a risk audit committee, we need a constructive debate committee.

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