No Risk Doesn't Exist

Some years ago, as a board director, I was involved in negotiations with another company for a potential joint venture. Part of my role was to identify and assess the strategic risks to our company. At one point in the conversation, the CEO of the other company made the statement that 'There is no risk.'

Far from reassuring me, this statement undermined the credibility of this CEO. How could they really believe that there was no risk? No risk doesn't exist. 

Assessing risks takes judgement, because it's not absolute. Those threats that are 'rare' don't usually draw a lot of interest, unless the cons’

Far from reassuring me, this statement undermined the credibility of this CEO. How could they really believe that there was no risk? No risk doesn't exist. 

Assessing risks takes judgement, because it's not absolute. Those threats that are 'rare' don't usually draw a lot of interest, unless the consequence is catastrophic, in which case they are noted, but in practice largely dismissed as 'impossible'.

Over the past six months we've seen what catastrophic can really look like. We've had to re-set our perception of risk and redefine 'impossible'. As we re-set our risk thermostat, we might question our judgement. After all, how can we know for sure? 

The reality is we can never know for sure where and when threats may arise. But we can be sure of one thing: No risk doesn't exist. 

How are you re-setting your risk thermostat? 

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