When we were kids, we did all kinds of things that were risky. How many wheelies did you take off a curb? Ultimately, the measured impact of that risky behavior created a whole new industry – bike helmets for kids, among them. What parent wouldn’t want to protect their child’s noggin, knowing that it only takes one wheelie to cause permanent damage?
We all know that the helmet alone doesn’t completely eliminate the risk, especially given all the environmental factors that could lead to an accident. But it can help mitigate the consequence of an accident.
Similarly, risk in business is unavoidable. While helmets are – if you’ll pardon the pun – a no brainer, the consequences and corresponding remedies of business risks are not quite so clear. Risk is directly associated with loss, and businesses experience loss in many forms – financial loss, productivity loss, and the most long-lasting of all, loss of public trust.
Mitigating those risks is a lesson in analyzing each risk factor and calculating its impact on overall risk.
The good news is that in driving there are so many data points available, and when analyzed, they lead to some pretty clear conclusions. When driver behavior is risky, target those things that negatively influence that risky behavior. If the environment is the risk, assess and control the environment.
Mitigating these risks can add up to a very rapid return on investment, no small part of which is keeping the public trust in your brand intact.