Summary:
- It only took 45 minutes for Knight Capital Group to lose $440 million from a computer glitch. Maybe, companies are paying too much attention to electronic technology instead of the professional development of people.
- “Everything always works just like it’s supposed to work, except when it doesn’t.” - There could always be a power outage, a fire, an accident, a computer error, a human error, a storm, a crime, a revolution or a financial meltdown. Risk management is about recognizing all of these possibilities that might disrupt your business. This includes backup plans and protocols as well as testing and training in case something happens. For proper risk management, we need the right people with proper training.
- Companies which invest in recruitment, training, and job satisfaction of their employees outperform other companies by a substantial margin, which indicates that people matter more than technology.
Noh Review: People say that later in the future, there will be more automation. And, they say that due to the automation, many people will lose jobs. Basically, we are talking about a world where technology replaces humans. But, what people are forgetting is that the more machines we have and the more we automate, the more people matter. More automation means more dependence on machines and equipment. But what if the machines fail? Machines cannot protect themselves. Automation alone cannot manage all sorts of risk of failure or risk of loss. We need people to protect the organization along with the machines. And in order to do that, recruitment, training and job satisfaction are required.
Morale of the story: When you know that your company will start to automate, start investing money on the people, not just on the technology.
Article: http://www.businessweek.com/articles/2012-09-05/the-more-we-automate-the-more-people-matter
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