Risk management is part of my professional work, my day job. I am also intentional about managing risk in life outside my work. I came across a succinct and straightforward definition of risk management. It is from Douglas Hubbard, in his book, The Failure of Risk Management, where he says, “Risk management is thinking about the next crisis; it means to be smart about taking chances.” Risk management happens when you prepare for the next failure or accident. How are we prepared for the risks in our ever-changing environment? What do we need to be mindful of when we think about managing the risks in our lives? And what are we choosing to ignore?
When You Prepare – Know Where You Stand with Risk
In her book, A Field Guide to Getting Lost, Rebecca Solnit describes elements of a risk quadrant, which is a standard method for reviewing risk. Here is how Solnit describes the known and the unknown.
There are known knowns. There are things we know we know. We also know there are known unknowns. That is to say, we know there are some things we do not know. But there are also unknown unknowns, the ones we don’t know we don’t know. This third category would prove crucial in the spasms and catastrophes of the war. And the philosopher Slavoj Zizek added that he had left out a fourth term, “the unknown knowns,” things we don’t know what we know, which is precisely the Freudian unconscious, the “knowledge that doesn’t know itself,” as Lacan used to say” and he went on to say that “the real dangers are in the disavowed beliefs, suppositions, and obscene practices we pretend not to know about.” The terra incognita spaces on maps say that knowledge too is an island surrounded by oceans of the unknown, but whether we are on land or water is another story.
Rebecca Solnit, A Field Guide to Getting Lost, p. 168
When You Prepare – The Four Quadrants of Risk
A risk quadrant is usually four equal squares and looks like this:
Known Knowns – these are the facts; things we know.
Known Unknowns – these are the known risks. For example, you know that one of the dangers in life is that you may be in a car accident while driving or riding in a vehicle. The action to reduce the risk, known as risk mitigation, is to wear a seatbelt and be in a car with airbags.
Unknown Knowns – these are the hidden facts. Someone knows something about a piece of data, but you don’t know it right now. It is here that Solnit mentions above that the unconscious is also in this quadrant, “knowledge that doesn’t know itself” as well as things we pretend not to know about.”
Unknown Unknowns – these are the hidden risks. You and no one else knows about these risks.
When You Prepare – The Reality of Risk
In reality, the risk quadrant looks more like this:
I am a little facetious in the drawing. Nonetheless, the unknown, both unknown-known and unknown-unknown, is seismic compared to what we know. Our known-known is so minuscule in the vast universe of life. And to add to that, we control so very little. Uncertainty and ambiguity are part of our reality. Again, as Solnit mentions above, the unknown includes practices “we pretend not to know about.” Sometimes we make it even harder on ourselves when we choose not to know.
For me, it is essential to acknowledge that I am certain of and know so very little in life. What I can control is my mindset and how I choose to face the uncertainties as well as my doubts. And how am I being honest with myself about any pretending I may be doing as a coping mechanism? Like Solnit mentions above, we are “surrounded by oceans of the unknown.” The challenge is to face the unknown with an honest vulnerability and careful determination.
Your Turn
Life continues to be ambiguous at best. How do we manage through it? What works for you?
I welcome your comments.
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