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| Risk Management |
| Planting Palm Trees: New lessons on Risk Management |
Dr. Ron Harris, professor of geology, has concentrated his research on the rim of the Indian Ocean for seventeen years. Seven years ago, his studies convinced him that plate movement in the area was creating a huge risk for an earthquake.
Once his research was compiled, he devised an inexpensive solution for minimizing the damage from an earthquake and the tsunami it would cause in coastal regions. He then set about on a campaign to warn governmental leaders.
Palm trees planted along the coastline, he said, would help to absorb the energy from the waves, and would give human beings something to cling to in order to keep them from being swept into the ocean. Unfortunately, no one listened. Dr. Harris was largely ignored, and today, he is haunted by every story from the region—dozens and dozens of them now—that recount how individuals managed to survive by clinging to palm trees.
As the sobering news from the affected areas mounts, now is a good time to take another look at your risk management practices. Lessons we learned from September 11th, and the Florida hurricanes have helped us understand how to insulate ourselves from threats at home. The current crisis will give us new practice dealing with the aftermath of a distant disaster.
- How has your company protected itself against losses that result from the lack of availability of imported items or other natural resources?
- How will your business be affected by a prolonged lack of communication or transportation in a distant area? (If your company depends on products routinely manufactured in, or exported from Southeast Asia—rice, coal, rubber, cocoa, or coffee, for example, you’re about to find out). \
It will take time to measure the impact this disaster will have in areas we haven’t considered before, and the cost will sometimes be more painful than a hike in the price of a teriyaki rice bowl for lunch.
In your industry, there are probably several “Ron Harrises” who understand the risks in your industry and have taken pains to warn you. Today, you have a new reason to listen. While you may not be able to prevent a disaster, now is a good time to “plant a few palm trees,” and create a plan to lessen the blow.
Source: Sykes, Shinika A. “BYU Geologist Warned of Tsunami Threat in ’97.” Salt Lake Tribune.
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