Taming risk

Do you have an appetite for risk? On the face of it, most people would say no. We generally try to avoid them... and yet, to varying degrees, we all take risks.

Whether it's spending money on the lottery when the chance of winning the jackpot is infinitesimal, eating in a restaurant when it might not meet certain hygienic standards, or even riding our motorcycle despite the numerous possibilities of accidents on the road, we still do things that could lead to negative consequences. It's all a question of risk appetite.

Robin Ibrard, who works in cybersecurity, is well aware of the risks involved in his day-to-day work. As he explains in this talk, risk-taking is essential to the extent that absolutely avoiding it leads to immobility. In fact, he points out that while some dangers are quickly perceived and avoided because of history or probabilities, there is a plethora of unforeseen events. No one, for example, had envisaged the idea of a pandemic forcing us into confinement. And yet, it has happened. Small- and large-scale events of this kind can occur at any time in the life of a company (and an individual). So how do we live with this "threat" hanging over us?

For him, at the entrepreneurial level, it's a matter of allocating a certain amount to these possibilities. An annual disaster budget that may not be needed, but will be there if it happens. This kind of thinking, without preventing us from living our daily lives and taking risks, would already be more promising than trying to erase the slightest initiative. On the other hand, if the means to prevent a risk doesn't exceed the budget, it's better to spend in order to plug the loophole.

Photo: Bolina - DepositPhotos