Tuesday, February 15, 2005

How to deal with big risks?

According to Denise Caruso in this month's HBR, there is still not much that can be done about true "Acts of God" risks. But when assessing big man-made risks without owners (such as in the case of genetically modified food), companies must involve a broad community that includes experts and all those that might feel the repercussions.

Companies tend to focus on their immediate interests. However big risks affect people and organizations far beyond the risk taker and it's about time companies make sure they are prepared where possible.

2 Comments:

Blogger Sellvamanee said...

Hi All,

Why everyone urge and work very seriously when problem or issue rise?
Being professional we have to be more pro-active and smart enough to use intelligent tools to do preprimaries risk assessment for the future financial matters prevention plan.

5:07 AM  
Blogger Serge said...

At the core of the problem is the fact that the world has become too complex for people to manage.

One could identify this as a coping disorder (and this is actually done, it is called AMCCD, please check out http://tripodians.com/?p=30 for more information).

Complex, intelligent risk analysis methodologies like Tripod Beta remain quite unpopular exactly because of this.

8:19 PM  

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