Airbag - steering-wheel continuum: Difference between revisions
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{{a|devil|}}{{maxim|You only need airbags if you don’t steer straight}} | {{a|devil|}}{{maxim|You only need airbags if you don’t steer straight}} | ||
The airbag - steering wheel continuum asks which is your containment device of choice? Where does your risk strategy | The airbag - steering wheel continuum asks: ''which is your containment device of choice?'' | ||
Where does your [[risk]] strategy sit, on the spectrum between: “I will conduct my affairs using expert people, with sensible customers, in a prudent manner, with a view to maximising shareholder return in the long run and minimising my exposure to extreme events, even if that means foregoing short-term gains in some cases” — in the terms of this metaphor, a “steering wheel” — and “sod it, I have an ejector seat, let’s bet the house on red” — an “airbag”. | |||
The likely outcome of the former is gradual, unspectacular prosperity. The likely outcome of the latter, in the best case is you write off your car. | |||
'''Risk managers''': if your first question, at any unexpected turn of events, is “legal, can I close out?”, you are an airbag kind of guy. | '''Risk managers''': if your first question, at any unexpected turn of events, is “legal, can I close out?”, you are an airbag kind of guy. | ||
Revision as of 12:30, 24 September 2021
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You only need airbags if you don’t steer straight
The airbag - steering wheel continuum asks: which is your containment device of choice?
Where does your risk strategy sit, on the spectrum between: “I will conduct my affairs using expert people, with sensible customers, in a prudent manner, with a view to maximising shareholder return in the long run and minimising my exposure to extreme events, even if that means foregoing short-term gains in some cases” — in the terms of this metaphor, a “steering wheel” — and “sod it, I have an ejector seat, let’s bet the house on red” — an “airbag”.
The likely outcome of the former is gradual, unspectacular prosperity. The likely outcome of the latter, in the best case is you write off your car.
Risk managers: if your first question, at any unexpected turn of events, is “legal, can I close out?”, you are an airbag kind of guy.
Employers: if you hire risk managers who are airbag fans, you are an airbag kind of guy.