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Re: [xml-dev] Re: XML As Fall Guy

On 28 Nov 2013, at 4:46 pm, Stephen Cameron <steve.cameron.62@gmail.com> wrote:

> The only solution is to get people with the expertise to do ALL the work, including writing a specification if necessary, and to take ALL the risk.

Ah, but then you run smack into the incentive problem.

"Sure, I’ll write a specification for you, especially if I’m doing the work!” 
“What, you want me to take all the risk, but you won’t let me have all the control (e.g., write the specification)? Sorry, can’t help you. Just too risky.”

Ultimately, everyone needs to have skin in the game. That means that risk has to be shared somehow (along with the rewards, of course).

> Financial markets are good at eliminating poor performers, just try getting reinsured after a project failure in the $M category. Risk markets (insurers) get very good at judging what is a reasonable price for something that involves risk. I once worked for a business called 'Objective Risk Management' briefly, that name came from managing risk in mining projects I think.

These projects all have completion bonds, that are indeed underwritten by (re)-insurers. Just try getting bonded again after your last project failed so badly that the client cracked open your completion bond :)

They also frequently involve liquidated damages, and all sorts of other contractual risk mitigation tools.

They still fail spectacularly, because of the structural issues already discussed.

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