5 Minutes Podcast with Ricardo Vargas
Business:Careers
In this week's episode, Ricardo talks about moral hazards. He exemplifies the recent collapse of the North American financial system when the Silicon Valley Bank closed its doors. From then on, a debate arose about the extent to which the government should interfere, with the emergence of moral hazard, because if the government helps, other banks will also have this right. Bank executives will assume riskier operations, and investors will be less demanding of the banks with which they do business.
From the perspective of projects, we can experience the same situation; that is, we risk more when we think there will be fewer consequences if the risk materializes. If nothing occurs when a supplier is late, he will not be incentivized to provide on time. The issue is that we do not know exactly what transpired with the delivery, and if we punish this supplier, we face the danger of other vendors refusing to do business with our company. This is the principle of asymmetric information; we know less about the impact and probability of the risk occurring than the supplier does. And there is no mathematical solution to this impasse; it all depends on human expertise to comprehend the issue and choose the least risky option.
Listen to the podcast to know more.
Any Assessment is Irrelevant without a Reference
Conflict of Interest and the Impact in your Project: 5 Ethical Principles to Be a Great Steward
How to Support Future Generations for a World Based in Projects
Some Considerations About Project Delivery Approach: Predictive (Waterfall), Hybrid or Adaptive (Agile)
Why Do We Often Ignore the Obvious?
Why "Stakeholders" is a Principle and also a Performance Domain in the PMBOK 7th edition
Peter Principle of Incompetency
PMBOK®️ Guide 7th Edition - Performance Domains - Part 3/3
PMBOK®️ Guide 7th Edition - Principles and Standards - Part 2/3
PMBOK®️ Guide 7th Edition - Overall Structure - Part 1/3
Your Example is Your Best Leadership Skill
Sometimes it is Too Early to Be Late and Too Late to Be Early: Understanding ASAP and ALAP
3 Tips for Aligning Divergences in a Project in Crisis
The Paranoia of Control Can Kill Your Project
3 Features of Agile that I Love
What is Your Exit Strategy?
How to Manage the Pain of the End: Understanding Project Closure
The "Burnout" Portfolio
Why Did I Choose Working with Projects?
Understanding the Differences between Product Owner, Scrum Master and Project Manager
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