Rational brain · Systems, Incentives & Ethics

Unhedged Exposure Design

Systems built to work only while conditions stay stable — one supplier, one customer, one platform, one key person — are efficient until the day they are not; fragility is invisible in good times and total in bad.

An everyday example

Eighty percent of revenue from one client whose procurement head just changed.

What it can cost you

Efficiency that is actually concentrated risk; counterparts who know you cannot afford their exit.

Warning signs

  • Our efficiency is really concentration.
  • They know we cannot afford to lose them.

One thing to do

List every single point of failure; for each, hold a second source, a buffer or an option, and accept the cost as insurance.

Is this happening to you right now?

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