Quality and the Rules of Risk

 This should be read together with previous postings.

We have at the core of our societies a failure in understanding of quality, its management and realisation, leading us to continually fail to take account of the downside risks and failure costs of decisions.

Improving quality is simply, working to continually reduce the ‘loss to society’ in the creation, use and disposal of goods and services, systems without loss are by definition risk free.

As the documentary brings out, external regulation cannot achieve this alone, only education, self control and an ethical stance can.

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Politicians have blamed the troubles at the banks on bad risk management. And they’ve promised to bring new rules to bear on those taking chances with other people’s money.

Risk: it’s a board game, it’s a Bollywood movie and, if you believe the leaders of the G20, it’s why we’re in the middle of a global financial crisis.

Did bankers and traders take big risks with our money? If so, did they know that they were doing?

Would stronger regulation curb risky behaviour or will it just stifle innovation?

In this documentary, Claire Bolderson investigates the point of risk, what went wrong, and how to make it right.

Download the documenary at http://www.bbc.co.uk/worldservice/documentaries/2008/12/081229_rules_of_risk.shtml

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