Bi-partisanship

By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.

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The election dramas are upon us, in both the United States and in Canada.  Let the theatre of words and promises begin.

As a kid I would listen to politicians speak on the news and I was always struck by two things: (1) the use of big words that seemed to obscure rather than clarify what they seemed to be saying, and (2) if politician A said that something was Red, then politician B would automatically say it was Blue – regardless of the actual veracity of the original statement.

Risk departments sometimes act like they are politicians.  Firstly they use big words that often obscure rather than clarify the situation.  Secondly if the front line likes an idea, the risk department often reflexively finds at least one thing to dislike about the idea – despite the attractiveness of the idea.

In the democratic societies we live in, I now (to a point) understand the nature of the partisan debates.  However, effective government should always come to a responsible bi-partisan solution.  So should risk departments and front lines.

Driverless Cars

By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.

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Driverless cars are all the rage.  It seems every company with the resources to do so is in the process of developing some aspect of driverless car.  This brings me to three questions; (1) is your company developing a driverless risk management system?; (2) is your risk management already de-facto driverless?; (3) Does it matter what you answer to (1) and (2) are?

Concept Cars and Haute Couture

By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.

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Concept cars and haute couture are fun to look at.  Car nuts and fashion mavens flock to the auto shows and the fashion week events looking to see the latest and greatest in design and ideas.  

To those who are not aficionados, many of the concept cars and designer fashions seem like elements more in place in a science fiction movie about aliens on another planet.   The question asked is who would drive such a car, or wear such an outfit!

The point of concept cars and haute couture is not necessarily to have it used, but to present a package of ideas and have them examined and debated.  Something does not necessarily have to be immediately practical for it to serve a valuable use as a discussion piece about what the practical limitations actually are.  That is the point that is missed by those who think concept cars and haute couture are silly exercises of wasted time, energy and creativity.

The problem I have with risk is that we do not have the equivalent of car shows or fashion shows.  Yes, there are new ideas constantly being developed for risk, but they are all slight improvements on existing ideas and methods.  The emphasis is on the immediately practical rather than testing the limitations of what might work.  There are few forums for the promotion of Concept Risk.  That also means there are few forms for debating the practical limitations of risk ideas.  This is not ideal.  Perhaps we need a Chicago Risk Week.