Risk Management in the World Cup
September 28, 2015 by
Filed under: Risk Management
It is more than dangerous to write about World Cup football while it is still underway. Interestingly, a big debate has now started in The Netherlands with respect to the "system" that is being played. Nearly everybody hates the way the Dutch now play, but very much like the results. The world famous offensive play of the Dutch has been completely changed into a much more defensive play. The results so far are quite astonishing; never before did "Orange" score so well.
It is all about Risk Appetite
So, what's the relation with risk management? Is there any, or am I just trying to write about football for once in my life? Well, in fact there is a relation. It's all about risk appetite. Offensive play, with less focus on defensive play has a high risk appetite. Defensive play has a lot lower risk appetite. Interestingly, most people complaining about the defensive play of the Dutch are equally vocal about the offensive play of bankers in the recent past, but then the exact other way around. Understandably of course, because losing a football match is not as bad as losing your house (i.e. for most of us).
Fewer Risks could lead to more Success
Even more interesting will be where this leads. Will the lower risk appetite of the Dutch actually bring them more success? We'll know in a couple of weeks. Maybe that lesson can be extended to the business world: fewer risks could lead to more success. It could reduce my interest in football though, because it sure isn't great to watch.