Fixing Stupid

by Rick Nason, PhD, CFA

Partner, RSD Solutions Inc.

www.RSDsolutions.com

info@RSDsolutions.com

 

This past weekend signaled the start of rugby season for us on the east coast of Canada.  I have two daughters that play (although one is in Texas going to school where rugby is not nearly as popular – apparently the women in Texas are wimps, and the boys won’t do anything with physical contact that does not involve a helmet).  

 

This weekend was the local “icebreaker” tournament where the teams play shortened scrimmages and the coaches are allowed on the field so as to better coach their teams in battle situations as they prepare for the upcoming season.

 

One of the scrimmages had the parents (all except one – and no, it was not me – my daughter is the co-captain of her team) in fits of laughter.  A new player made an amazing break down the field and scored a try.  However instead of “touching the ball down” as required, she continued to run though the try zone and out of bounds – which of course nullified the try.

 

The coach on the field was of course beside himself with disbelief, and was about to let go with a tirade, when the assistant coach shouted to him, “You can’t fix stupid!”

 

With that we all cracked up, and the coach immediately forgot about the tirade.  Of course the girl who “scored” the try felt awful, but all was soon forgotten – and fortunately it was only an unofficial scrimmage, and thus the score was not of importance.

 

How does this fit into risk management.  Very simply.  In risk management we try to fix stupid.  We set policies in place against stupid.  We put in place redundancies against stupid.  We have alternatives to mitigate stupid.  Ultimately however “you can’t fix stupid!”

 

Rugby Car Loading

by Rick Nason, PhD, CFA

Partner, RSD Solutions Inc

www.RSDsolutions.com

info@RSDsolutions.com 

 

Around this time of year I become a rugby parent.  I realize at this statement that some of you will be calling the authorities, shocked that as a parent I would let my kid play such a sport.  My girls love it, and yes, while they do get dinged up a bit, they learn valuable lessons about hard work, overcoming challenges, and what it means to go through experiences as a team.  It is a truly awesome sport, and I only wish I was a few years younger. 

The other thing I wish is that a sportswear company would come out with a line of clothing for rugby spectators – particularly the parents who need to stand on the sidelines and cheer on their offspring.  At a typical rugby tournament (and this week is no different), you need to prepare for hot sunny days, rain and even snow!  After loading the car with Super-Soakers (long running team rugby tradition – too complicated to explain) and the different types of cleats, and practice rugby balls, there is barely room left for the different types of outwear required for the parents.  Now it becomes a risk management exercise in what exactly the weather will be.  

Some parents plan for the worst and just assume the weather will be cold and snowing.  They pack a parka and winter boots.  Others assume a different doomsday scenario which is rain – which could be warm rain, or cold rain – and thus requiring different clothing strategies.  Others hope for the best and hope for warm breezes and just bring sun screen.

Finally you get the risk averse who bring a separate vehicle simply to carry the different types of outerwear that may be needed.  This of course involves extra costs – a hedging cost if you will. 

The whole exercise in picking your clothing for a rugby tournament is a lot like deciding on the type of hedging program that a company will pick.  You can plan for the worst, the best, or everything, but the more diligently you try to cover every possible scenario, the more expensive it becomes.  

Meanwhile the kids just play with no regard to the weather.  The benefits of youth!