A paradigm shift has been affecting our highly industrialised Western societies for the past fifteen years: the loss of all appetite for risk and the desire to insure everything.
Risk has become “the” sensitive issue, and we no longer hear “taking risks” but “managing risks”. But isn’t entrepreneurship linked to the ability and acceptance to take risks?
Of course, risk must be calculated and limited as much as possible, but it seems that we approach it from a false angle: we look at what risks exist and then imagine that we are undertaking, whereas we should first think about development, services and then evaluate the risks. Let’s try a few theses on this subject.
Firstly, the market has changed completely: suppliers, competitors and customers alike have become intolerant of risk, and even somewhat inconsistent with it. A few flashes on this subject:
• Risk must be found in others.
• Risk management is a huge financial market.
• The image risk is such that it blocks most groups.
• Compensation amounts are getting out of control.
• People insure themselves for anything and everything to take risks.
• Risk assessment is not in line with reality (documents are checked and signed by 10 people, but cybersecurity is missed).
Secondly, the new division of tasks and functions and the “splitting” of responsibilities make people less responsible: no one is responsible for anything “thanks” to the division of tasks. In short: everyone is guilty, but no one is responsible. In this respect, who has never heard “I have to ask my boss” or “I am not competent to decide” during a transaction?
Thirdly, this fear of risk pushes each instance, unit or group to ‘armour’ itself against possible trouble (enemies?), even within the company. In other words: you must cover your tracks…
Finally, it is interesting to note that many individuals are taking greater and greater physical risks in the mistaken belief that technology, insurance, and good people will come to their rescue when the time comes.
But we remain positive that companies and individuals alike will find the right balance between risk-taking and general ‘armouring’ at short notice.
Good luck, good thoughts, and good reading.