This idea came to me when my son was planning a month long camping trip into the wilds of Alaska with several friends. They were sending hours and hours planning what they would take and how they would survive. It seemed to me that one major risk that they were not considering was how they would deal with the possibility that some problem might cause them to disagree about whether to cut the trip short.
What is the reaction of your firm going to be in the event of a large loss or other crisis?
If you are responsible for risk management, it is very much in your interest to enter into a Crisis Pre-Nuptial.
The Crisis Pre-Nuptial has two important components.
- A protocol for management actions in the event of the crisis. There is likely a need for there to be a number of these protocols. These protocols can be extremely valuable, their value will most likely far exceed the entire cost of a risk management function. Their value comes because they eliminate two major problems that firms face in the event of a crisis or large loss. First is the deer in the headlights problem – the delay when no one is sure what to do and who is to do it. That delay can mean that corrective actions are much less effective…
View original post 198 more words