If you use a risk filter, you can get a new perspective on how society deals with risk.

First, you need to consider the concepts of risk appetite and risk tolerance. These vary based on the individual involved. Risk appetite refers to the quality of seeking risk. Most people are risk-averse, meaning they do not seek out risk. Others are risk-seeking, think rock climbers. Risk tolerance is related to risk appetite, but has to do with reaction to risk occurrence. If you are risk-averse, and have a low risk-tolerance, you would not be found anywhere near rock climbing. If you are risk-seeking and have a high risk tolerance, then bring on the cliff! Over a volcano? Even better!

What does this have to do with society and risk? If you observe the latest political or financial crisis, you will see that society expresses its risk appetite and risk tolerance through regulation. If someone, some group, organization and/or company acts to create  too much risk for society’s risk tolerance, then you see calls to “reign in” the risk by passing laws or regulations to control the risky behavior. Then sit back and watch the debate between the risk-seeking and the risk-averse, and those with high vs low risk tolerance.