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Airbag - steering-wheel continuum: Difference between revisions
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{{a|devil| | {{a|devil| | ||
{{image|Airbag|png|The Karma Police, yesterday}} | |||
}}In a {{nutshell}}: {{maxim|You only need airbags if you don’t steer straight}}. | }}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''?”</ref> that asks: '' | 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. | 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. | ||
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'''Employers''': if you hire risk managers who are airbag fans, ''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 | 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]]. | |||
{{Sa}} | {{Sa}} | ||
*[[Contractual risk]] | |||
*[[Client communications]] | *[[Client communications]] | ||
*[[Insurance]] | *[[Insurance]] | ||
{{Ref}} | {{Ref}} | ||