With the election of Donald Trump, I have seen an associated uptick in the number of consultants talking about the increasing need for risk management. Everywhere I look I’m seeing “risk management.”
But talking about risk now is like trying to sell fire insurance after your house has burned down. It may be on top of people’s minds but the right time to talk about risk management is always. But especially prior to surprising events like Brexit and the election of President Trump. Risk management should be part of the everyday playbook in how problems get solved.
Consultants, as a group, are very good about selling for the situation in front of us today or that occurred yesterday. Like clockwork:
- If the stock market takes a hit you will see all kinds of mentions about aligning strategy with EPS and EBITDA.
- If something unexpected happens in the world they will bring up Risk Management.
- If unemployment starts going up they will talk about aligning your workforce to the next three years.
- If a treaty is about to be signed addressing climate change or the cost of carbon you will see them going hard after sustainable initiatives.
Anyone focused on yesterday or today is not really looking out for your best interests – as they say on Wall Street, buy low/sell high! When unemployment is going up they should be talking to you about how you can leverage the opportunity to get new customers. When your earnings are strong, you should be paying even closer attention to aligning strategy with financials.
When everyone thinks the same and acts the same you end up with these recurring cycles that strike everywhere at once. Groupthink is very pervasive and can occur even when you don’t know you are part of the group.