Risk Amnesia

Michael Giberson

Rick Bush explains how one manager prevents “risk amnesia” in a Transmission & Distribution World column. (Reg. required.) Risk amnesia is a condition that can spring up when an investment decision turns out badly, and suddenly no one can recall being part of the decision. Bush wrote:

Donnelly cracked me up when he shared how he addresses risk amnesia. “I take out my camera phone and take a photo of each one of us who are in the room making investment decisions. That way, none of us can later say, ‘I wasn’t in on that decision.’”