Who wouldn’t want Ryan Callahan on their hockey team? The New York Rangers’ captain isn’t the biggest star in the NHL but ask General Managers and fans throughout the league and everyone would be happy to have him suit up.
That is until you find out that Callahan is presently negotiating a contract extension seeking 7-years, $42 million and then maybe you don’t want him that much. (“That bum isn’t worth seven million bucks!”)
Risk management decision-making is just like this. Tell any leader about a high organizational risk and they will behave the same way: “What! We cannot have a high risk. Mitigate it. Eliminate it. Make it go away. We don’t have risks here.”
That is until they find out that it is going to cost them $49 million to treat that risk and then they change their mind. (“That risk isn’t worth seven million bucks!”)
Getting a hockey player is like getting rid of a risk: It’s a really great idea until you have to pay for it.
Image credit: Gannett