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Why Do Smart Leaders Deny Serious Risks in the Post-Covid World?

When dealing with smart people who deny risks, focus on their emotions

Gleb Tsipursky
Mon, 08/09/2021 - 12:03
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When a threat seems clear to you, it’s hard to believe others will deny it. Yet smart people deny serious risks surprisingly often.

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A case-in-point example comes from my experience helping a midsize regional insurance company conduct a strategic pivot to thrive in the post-Covid world in January 2021. While doing a pivoting audit, I observed the underwriting department failing to address serious long-term risks for a number of industries resulting from shifts in habits and norms due to the pandemic.

For example, many companies committed to having many employees work from home permanently, ranging from innovative tech companies like Dropbox to traditional ones such as the insurance giant Nationwide.

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