}}In a {{nutshell}}: {{maxim|You only need airbags if you don’t steer straight}}.
The “[[airbag - steering-wheel continuum]]” is a management thought experiment<ref>I know what you are thinking: ''“''Who knew [[Middle management|management]] experimented with ''thought''?” Actually, the JC made it up, and it is ''not'' a management thought experiment, though it should be. It is a ''[[constructive]]'' management thought experiment.</ref> that asks: ''Which is your “containment device” of choice?''
Where, in other words, does your [[risk]] strategy sit, on the spectrum between: “I will conduct my affairs using market experts, whom I have empowered, to deal with sensible customers, whom I know well, in a prudent manner, with a view to maximising [[shareholder]] return in the long run and minimising the firm’s exposure to extreme events, even if that means foregoing short-term gains in some cases” — in the terms of this [[metaphor]], this is the “steering wheel” tactic — and “sod it, I have an ejector seat, I’m okay, so dammit, let’s bet the house on red!” — this is an “airbag” tactic.
Should things not go according to plan, 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, but walk away — with a only a mild case of whiplash and a luxuriant [[regulatory enema]] to look forward to.
'''Risk managers''': if your first question, at an unexpected turn of events, is “hey, [[legal eagles]], can I close out?”, you are an ''airbag'' sort of person.
'''Employers''': if you hire risk managers who are airbag fans, ''you'' are an airbag sort of person.
Don’t be an “airbag” sort of person.
====[[Contractual risk]]s====
Those contemplating outsourcing could profitably spend some time with your standard form contracts considering to which extent they address economic events — wherein the steering wheel, accelerator, brake and clutch are important — and to what extent they truck in formal legal risks — wherein the precise textual articulation is the key — and to what extent, by accident, design or the basic operation of universal entropy, the first has elided into the second. We have more thoughts about that [[Contractual risk|here]].
