Re-Thinking Risk Management
Don Tapscott, futurist and author of Wikinomics, posted a two-minute video (tip: Kevin Johansen) suggest that it’s time to shift how we think about financial risk. His proposal is based on two concepts:
- financial institutions should be sharing intellectual property. Specifically, basic risk models should be shared in a version of the creative commons, with competition happening above and beyond the basic models.
- financial institutions should be peering, ie acting together to reinvent their industry.
As readers of Wikinomics know, this is consistent with Tapscott’s position that information and Open Source thinking change business. He positions this within the context of a failed financial system based on closed and proprietary thinking, suggesting that a more collaborative method of risk analysis would create a more stable, and ultimately stronger market.
As nuance readers know, at Business Catapult, we have been working on an evolution of risk management that takes into account sustainability thinking and triple-bottom-line metrics.
As we anticipate the upcoming Social Capital Markets (SoCap) conference (who just hosted the first of three conference-related twitter chats this week), we wonder how our fellow conference goers (and anyone else concerned about the social captial markets) think about Tapscott’s proposition, and how the social capital marketplace could take his advice.
go long on cooperation around scarce resources by people with less money. go short on the re creation of the throw away economy.
July 29th, 2009 at 10:35 pm