Risk Anatomy: Difference between revisions

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:::(i) Substantive unfairness <br>
:::(i) Substantive unfairness <br>
:::(ii) Procedural unfairness <br>
:::(ii) Procedural unfairness <br>
===The perils of the corporate person===
:(a) Unlike a real person, the interior monologue is not private. <br>
:(b) Unlike a real person, a multinational firm has an utterly verbose interior monologue, everyone is shouting at the same time adding each other to conversations they don’t care to be a part of. Joel Bakan says a corporation is like a psychopath. It might be run by them – that’s plausible – but in its own personality it is more like a paranoid schizophrenic with multiple personality disorder. <br>
:(c) This has proved in this information age to be a far greater bane than anyone realised. Everything is discoverable and like all masses of communication that can be pulled of context it inevitably looks worse in hindsight than it did when it was written down. <br>
:(d) The audit trail fulfils following functions – <br>
:::(i) evidence of compliance with process without reference to substance <br>
:::(ii) To evidence and memorialise decisionmaking. <br>
:::(iii) to evidence qualifications, derogations, assumptions and conditions upon those decisions. Ie to diffuse responsibility for the decision. <br>
:::(iv) The key for SMEs is to articulate conditions of a qualitative (ie requiring comprehension of the subject matter) and not quantitative nature. Ie “assuming sufficiently robust operational setup to satisfy the legal and regulatory requirements”. This allows the operations SME, to whom the consultant will inevitably turn, to create her own qualitative conditions. If she is experienced, her conditions will be in the gift of a third SME, who will create her own qualitative conditions in the gift of a fourth. Eventually the trail will lead in a bureaucratic [[Möbius loop]] back to legal, and the circle of diffusion will be complete. <br>
:(e) For employees who are part of the infrastructure rather than revenue generation – and that is most of them – there is a sharp asymmetry. <br>
:::(i) You are not rewarded for ambition or risk taking – that is not your job. <br>
:::(ii) You are not rewarded for actually avoiding risks – a bad outcome that did not eventuate is not just dog that did not bark in the night-time, it is part of the infinite set of possible but non-existent events. (option pricing) <br>
::::(1) before it materialises, a risk has a positive value, albeit one that is usually impossible to quantify. <br>
::::(2) After the risk has passed untriggered, it has no value. It is like an option that expired out of the money. <br>
::::(3) If the risk comes about but the firm has defended against it, again it has no value. The firm’s resulting profit and loss is flat <br>
::::(4) If the risk comes about and the firm has not defended against it, then notionally, someone is responsible. But see diffusion tactics – here the primacy of the individual’s survival instinct over the organisation kicks in. <br>
===Motivations===
===Motivations===
:(a) Individuals who wants to get things done that involve taking new risks or Crossing into unknown territory must develop tools and techniques for disarming natural employee risk avoidance strategies.  for example, <br>
:(a) Individuals who wants to get things done that involve taking new risks or Crossing into unknown territory must develop tools and techniques for disarming natural employee risk avoidance strategies.  for example, <br>

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