Dear members—
“Risk isn’t all bad—it’s mostly good,” says Quartz contributor Allison Schrager, “and it’s something you can manage.” The second episode of our show RISK explains two main ways to manage risk: hedging and insurance. And it explains how poker players, magicians, and surfers use them.
Hedging and insurance can mean getting at least some of the upside of risk without all of the downside. But sometimes attempts to manage risk lead to even more risk-taking. When lifeguards introduced the use of jet skis to rescue injured surfers, for example, surfing became less risky. But, because they knew they were more likely to be saved, many surfers responded by tackling bigger and more dangerous waves.
That phenomenon is called the Peltzman effect, and its most famous example is seatbelts. In a famous paper published in 1975, economist Sam Peltzman claimed that seatbelts, airbags, and anti-lock brakes led to more car accidents, because people felt safer and so drove faster.
RISK is produced exclusively for members. You can watch the previous episode, on how to take smarter risks, here. And look out for the next episode, all about the unpredictable risks that we can’t insure ourselves against.
GENETIC TESTING
It’s been 17 years since scientists first sequenced the entire human genome. Since then, our understanding of DNA has helped improve medicine in countless ways. It’s also created a new industry: Direct-to-consumer (D2C) genetic testing.
In this week’s presentation for members, Quartz’s Dasia Moore and Quartz health and science reporter Katherine Ellen Foley provide a primer on the business of DNA—from D2C genetic testing to the nascent world of gene-editing startups.
D2C genetic testing may have reached its peak—perhaps because of the privacy risks, or perhaps because those most interested have already been tested and have no incentive to buy again. Our presentation covers the major ethical issues in this industry, too, from privacy to more fundamental questions about whether we really should be so focused on the ways in which we’re different.
You can view all of our member-exclusive presentations here. They’re designed to give you a quick introduction to a topic, and can be reformatted and edited as you wish.
With best wishes for a relaxing and thought-filled weekend.
Walter Frick
Membership editor, Quartz