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.   

And Now For Something Completely Different

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

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If my blogs have been a bit delayed recently it is because I had a good friend loan me their complete collection of DVDs of Monty Python and the Flying Circus.  What a wonderful way to spend an entire week’s free time binge watching skits such as Bicycle Repairman, citing lines such as “But it’s my only line!”, watching wacky animations and waiting for the hermit survivor to come out of some forbidden place to announce the beginning of the show.  Such extensive binge watching does however delay the blog production.

I was a big fan of watching Monty Python on Saturday nights when I was in high school in the late 70’s.  Back then the comedy was novel, rebellious and slightly risqué.   What was completely surprising to me however as I watched the show 35 years later is exactly how novel, rebellious and slightly risqué the show still remains – despite the fact it was first run in 1969.

Monty Python was fresh – it was different.  Much more significantly though is the fact that it has stood the test of time exceedingly well.  It has aged very well indeed.

When it comes to risk ideas and concepts, which ideas is your company implementing that might seem to be novel, rebellious or perhaps even slightly risqué (if risk managers even have the ability to think in such terms).  Much more significant however is the question of how the risk ideas your company is implementing will stand the test of time.  Will they age very well indeed?