Tuesday, September 29, 2015

Risk Management with Known Risks: Volkswagen





One thing about the Volkswagen issue is that the executives seem to have been caught flat-footed on the whole thing. It is as if they never expected to get caught. I mean, even if you're not engaging in widespread corporate malfeasance, don't you have some sort of risk management plan in place?

You're not going to call it "Plan for when we get caught cheating on emissions tests" but that could be one of the conditionals that are planned for. It's just bad practice. Gaming possibilities is a policy decision that needs made. I was reading where even as of 1945 America and its allies were planning on contingencies for a possible German victory. And that was America, who can never lose. Man, these Germans never learn.