Friday, September 1, 2017

Passion 2

By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
In a previous blog I wrote about the desirability of passion for risk management over simply knowledge and intelligence about risk management.  I briefly argued that risk managers who are passionate about risk management tend to be more effective than those who simply know a lot about risk management.
I believe there are many reasons for this – enough that would fill a book.  However, one that readily comes to mind is that passion is contagious, while knowledge and intelligence is not.  A passion for risk management (or anything else for that matter) tends to circulate and catch on.  When others outside the risk management function become passionate about risk management then risk management is almost certain to be effective.  After all, one of the current risk catch phrases is that “risk management is everyone’s job”.  That statement is totally vacuous if there is not a positive culture around risk management.  A positive culture starts with passion, while knowledge frequently kills the culture.  (What was your favorite subject in school – was it the one where the teacher was passionate or simply knowledgeable about the subject?)

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