risk

How Many Layers Do You Add to Manage Risks?

I listened to Tim Harford’s podcast, La La Land: Galileo’s Warning (Classic). Galileo warned that adding more layers of risk management does not prevent bad outcomes—and might create them. Yet, I’ve said I respect risk management. Not all risk management is created equal. We can use additional steps, sequential occurrences, to manage risks. Layers are the concurrent practices we might

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Why Do We Say “An Abundance of Caution” Instead of Risk Management?

I keep hearing this phrase in the news: “Out of an abundance of caution…” Then the newscaster explains certain actions. Why not just talk about risk management? What’s wrong with discussing risk? Here’s my theory: the words “abundance of caution,” means all of these things: We think there’s a potential problem, but you don’t have

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How Do You Manage to Notice When You Need Updates or Upgrades?

Today is a maintenance day at Chez Rothman. Our heating system has an error code, and we’re upgrading our wifi. So people are stomping around—and I’m very happy about that. What we’re doing today is “extra” maintenance—updating and upgrading. We do normal maintenance all the time. The cleaning people make our house sparkle once a

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What Do You Gain or Lose with Shortcuts, Rules, and Laws?

I love shortcuts—especially if I’m not supposed to use them. Why can’t I avoid right-angle paths and use the hypotenuse instead? That saves me some time. Can I make my exercise easier? I can—and I too often lose the value of the exercise. So shortcuts aren’t always good or always bad. The context matters. Shortcuts

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How Do You Choose Between What’s Right and Your Ability to Make Money?

Imagine this scenario: You have an opportunity to keep your current salary and work for an organization of somewhat doubtful integrity. Or, you have an opportunity to make orders of magnitude more money—but that organization has a reputation for human rights abuses. What do you choose? More money creates more freedom in your life, for

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