By Rick
Nason, PhD, CFA
Partner, RSD Solutions Inc.
Near where I live in Nova Scotia
there is a small fishing village called Peggy’s Cove. Peggy’s Cove is a very quaint and beautiful
place, and although it is just one of at least a hundred such coves in the
Maritimes, it is Peggy’s Cove that has become a major tourist attraction.
Peggy’s Cove consists of a small
village where all of the brightly coloured fishing boats tie up. At the point of the cove there is a large rock
formation on which sits a lighthouse.
There is also a restaurant as well as the mandatory gift shop selling cheap
and mundane yet overpriced t-shirts and trinkets with “Peggy’s Cove” printed on
them. The only other thing at Peggy’s
Cove is a large parking area that allows tour buses filled with foreign
tourists to turn around. It is the rocks
that cause a problem.
Each year it seems a tourist
will want to get that perfect shot of the waves crashing on the rocks and
instead they themselves will get caught by a wave and crash out to sea. This is despite numerous and highly visible
warning signs warning people to stay well away from the edge because of the
powerful waves and tides. When someone
gets swept into the water the fishing boats will scramble, and even though they
are just around the corner in the cove, the results are generally tragic.
Last year was no exception. A young man visiting the cove with his
girlfriend, and wearing a Go-Pro camera on his head was caught by a wave and
swept out to sea. It was truly
tragic.
Understandably his friends and
family are distraught and they want to do something about it. The question is what to do? Based on newspaper accounts they want the
government to do something. In
particular they want regulation put into place.
However what regulation would you put into place? Should there be a ban on wearing Go-Pro
cameras on your head when visiting Peggy’s Cove? Should people with a propensity to ignore
warning signs be banned from visiting?
Some have suggested that Peggy’s Cove should be closed off to tourists!
There
is a lot that risk management can do to mitigate risks. However risk management, and in particular
regulation can only do so much to prevent people from undertaking risky
actions. This is a particularly tragic
case – and unfortunately there will be more such tragic cases at Peggy’s
Cove. I truly feel for this young man’s
family and friends. However, despite the
best efforts of risk management, ultimately personal accountability and
responsibility also has to come into play.
