Risk Aversion as a Tool

Non-technical business people are like sheep. They tend to move in a herd, make similar decisions based on that pack and are easily scared. This is especially true with management. They have one eye on their career health and the other on their bonus. Most don't have time or the stomach to challenge the herd mentality.

This fact makes Risk a weapon. Management fears Risk, for themselves and for the firm. All one has to do is make a case for Risk in doing or not doing something and the herd moves along. It makes IT the shepherd of the flock. Risk, conveyed discretely but powerfully, is a wonderful tool.

The honesty really is just that, Risk is a tool. Man times the Risk Aversion is much more expansive than the Risk itself. Spending weeks testing for any Risk in a minor change to code is more often more costly than the error that might ensue from the change and/or a rollback. But items like this keep IT pockets fat, as long as business pockets are deep.

And what does Risk Aversion gain? Obviously the Recession cannot be avoided no matter how many hours we sit and dream up the most obscure Risk scenarios to make sure "there isn't anything we haven't thought of". Risk seems especially important to firms in the Financial Industry and there aren't many firms in that realm who have not seen their stock prices drop like a rock and even bankruptcy as a possible future. So what Risks have they paid so dearly to avoid? Firm reputation? With many being bought and sold, who's reputation is being saved?

Perhaps one day the business herd will change direction, realizing that there is little value in much of the Risk Aversion. That through some careful analysis of the story IT is selling, they can decrease costs and still maintain an acceptable level of quality and Risk control. For now they are too focused on surviving the current economic crisis, kind of a forest for the trees effect. Until they decide to change, IT will continue to build its kingdom on their backs and use tools like Risk to do it.