Monday, April 16, 2012
Are We Risk Averse or Risk Ignorant?
Are We Risk Averse or Risk Ignorant?: irst, I don’t think most people or their organizations really consider risk in their decision making. So they aren’t risk averse or risk prone. The decision makers may fear change or even have a knee-jerk reaction that something is “too risky” but I’m not sure risk analysis affects their decisions. A risk averse organization (meaning they want to avoid or minimize all risks) would have an extensive risk management program (few do), business continuity and disaster recovery plans, succession plans and include risk analysis as a part of their decision-making process. Similarly if people were risk averse they would all eat right, not smoke, wear seatbelts, not drink and drive, not drive while distracted and always have an umbrella.