On fragility, time and risk

I rarely post links to stories about banking and financial services but this article is highly interesting and has a lots of food for thought.

How (anti)fragile are you?

Remember that this is the age of just-in-time inventory management, Cooper added – meaning supermarkets have very small stocks. With impeccable understatement, he said: “It is sobering to contemplate the consequences of interrupting food supplies to the world’s major cities for even a few days.”

Where is your focus?

“When you can be out of the door in five minutes, your horizon becomes five minutes,” one City worker told me. Another asked: “Why would I treat my bank any better than my bank treats me?”

Where is your risk?

Risk-taking at a bank that will always be saved, they said, is like playing Russian roulette with someone else’s head.

How the banks ignored the lessons of the crash