Airbag - steering-wheel continuum: Difference between revisions

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> 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”.

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 [[regulatory enema]] of some description.

'''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.

Don’t be an airbag kind of guy.