In the book ‘You are what you risk’ a similar point is made about the risk ecosystem – “the cultural social, policy and economic environment that affects the risk decisions of an individual or organisation.” Wucker tells the tale of how a couple found themselves in $1m of debt but were in a better situation to respond and adapt compared to someone else they met who was $100k in debt, but already suicidal. For the couple it was the support network that allowed them to take the risk in the first place but also gave the support so that they can respond when the shock hit them ($1m debt).
The community / support network essentially made them less fragile to a shock.
A community can decrease your fragility in a number of ways:
- emotional support (emotions that get in the way of strategy)
- advice
- financial support
- network (of contacts)
- spreading the risk
- … anything else?