By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
Partner, RSD Solutions Inc.
Last weekend Vancouver was hit by a storm which knocked out power
for many and created the general chaos that such a storm normally causes. One of the outcomes of the storm was that the
911 emergency phone system was overloaded.
You might think this was because there was a very large number of
emergencies to report; however that was not the reason. The reason for the overload of the 911 system
was that the power company`s reporting system was inoperable. In other words, when people could not get
through to the electric utility company they phoned 911 instead to find out
when their power might be repaired and turned back on.
My first thought upon hearing this on the news report was `what a
bunch of self-centered ninnies`. However
upon further reflection I realized this happens all the time. A system or tool that is easy to use, will be
used, and furthermore will often be used in quite unintended ways. Risk systems are not immune from this. Indeed, one could right correctly categorize
the 911 emergency phone system as a risk tool.
Life preservers become seat cushions, derivatives bought as
financial hedges become tools of market speculation, Value at Risk becomes a
measure for determining compensation, the computer assisted traction system of
an SUV becomes an excuse to make an unnecessary trip in a blizzard – and the
list goes on and on.
Is your risk system being misused?
No comments:
Post a Comment