The Development of Risk Mind

As I mention the collapse of the safety myth previously, you understand that Japan is no longer safe. I give you the detailed explanation for the definition of risk afterward. Given that uncertainty for safety is risk for the present, it will be more important even for individuals to develop a sense of risk mind to cope with risks existing in Japan. As for companies, risk management is tremendous necessary. It’s one of the important managerial methods not to lose money. Although business is regarded as an activity to make profits by effectively using a wide range of assets ranging from capitals to workforce, how not to lose profits is also one of the significant business styles. If a company suffers a big loss without proper risk management, the profits the company struggles to earn will vanish in one day. In terms of profit-based activities in business, risk management has been well-developed in company’s management.

This is a book for personal risk management. So some readers may argue that individual risks are completely different from company’s. Yes it’s true! Companies are run on economic rationality’s bases. Despite of some big arguments on the nature of companies, they, in principal, have to keep making proper profits as going concerns. On the other side of the coin, individuals don’t always behave economically. People try to enjoy life besides monetary affairs. Many people don’t hesitate to spend a lot of money on what they want such as buying luxurious brands, fabulous cruises, some unbelievably spend money on very dangerous things. The basic motive, however, is almost same as any organization. Although there is a difference in measuring the values they are looking for between individuals and organizations, both of the two parties pursuit more fruitful outcomes. In this sense, it’s significant for individuals to learn how to control the risks which lurk in daily life in order to obtain fruitful outcomes. The risk management method developed in organizations is also useful in personal life.

Consciousness toward risks is a very instinct talent in human beings. Since ancient times, people have felt something dangerous sensitively. In old days when people hunted wild animals for food, we were at the same time in the dangerous situation where we were attacked. The antenna feeling something dangerous could catch the signals in order to start actions for avoiding dangers.

In today’s world, however, new technologies have been incessantly developed to look for convenience, our life has drastically improved. On the other side, we are so independent on highly advanced technologies nowadays that human beings seem to have lost a sense of feeling risks.

Car technologies, for example, have been developed by leaps and bounds not only for more convenient driving but also for the safety. Despite of the constant developments, many drivers and pedestrians die every year. If one function is advanced especially in speed, it makes cars drive faster, resulting in more causalities. Drivers take for granted the increasing speed helped by technologies. As cars drive faster, the damages are getting bigger. On the side of pedestrians too, they are accustomed to the speed so much that they sometimes feel OK to cross streets against "Don't walk" signal. The reality is that there are a lot of those accidents. The same can be true in gas efficiency. A technology is well developed in the field. Drivers tend to drive longer because they can do so with the same amount of petrol. Yet it could lead to more causalities as well in accordance with the length of driving.

There are mainly two reasons, I think, for the lost of risk sense. One is the lost of imaginary power. To feel something dangerous, it’s critically important to give full play our imaginations. In our daily life where there are risks all around us, imaginations are helpful to cope with uncertain risks. It’s because we can prepare for something unexpected in advance to some extent if we can imagine it. The loss of imaginary power itself is due to today's information societies. Before imaging, any of information catches our eyes. There is no room to give full play imaginations. The other reason is that today’s societies are so complicating that only a single factor doesn’t always cause one result. Namely, there are so many factors affecting one phenomenon. Furthermore, these factors come out sometimes at the same time, which will make them more complicating. Therefore, it seems to be very difficult to foresee ongoing results.

Nevertheless, we would like to lead a daily life safely of course. To do so, it will become important to cope wisely with risks surrounded by us. Up to the present, we just care about something dangerous only after listening to the news of miserable incidents. There are some people who positively gather information on the events affecting the life. Even those cautious people may face latent risks in the near future because the societies are more complicating as I mention. So now is time when individuals have to develop risk management skills so that we can cope with risks.