Relationship Risk

A.M. had some sage advice about dealing with people.  "Too often we underestimate the risk associated with a new relationship".  This is so true when you are considering switching providers - banker, lawyer, accountant, financial planner, contractor, mechanic, physician, dentist ..... the list goes on and on.  Once you find a person who is honest, ethical, fair and objective (with your interest in mind), you have "conquered" that "start-up" risk since the probability is they remain in that state (and don't revert to evil).

This relationship risk is tested especially in inflationary times.  As prices increase, the temptation to switch to the low cost provider becomes greater.  This is especially true as the coupon work tries to incent you to switch and try out a new provider.  But that "one time" incentive must be weighed against the relationship risk of a new person and a history of getting used to each other - maybe a better word is mutual trust.

Coincidentally I picked up at the library,  Stephen M. R. Covey's second book on Trust - "Smart Trust" and started to scan it (the first book, I was unable to completely get through "The Speed of Trust").  "Trust has becom the new currency of the global economy.  It is the basis on which many people do business - or don't" he states. 

The following chart on page 15 shows an interesting relationship between corruption and GDP.

Then the "punch line" chart on page 24 shows the relationship of trust and happiness of Nations.