The following are some some great quotations on trust: “Trust but verify” – Ronald Reagan “Don’t trust anyone” – Donald Trump (His son claims he said this to him at a very early age) “Opportunities are suspects until proven prospects” – (modified version of a phrase with an unknown source)
The fact is that there is a significant portion of people who will not act justly so it’s important to have your guard up. Something as simple as not looking both ways before crossing a street is fatal. Similarly, in business, one small human misunderstanding/deception/human error in judgement can cause you to lose time or money.
The following are seven examples, in no particular order, of the risks associated with too trusting or not skeptical enough:
- Consumer debt
- Ponzi schemes
- Identity Fraud
- Theft
- Unrealistic overly highly risky investments
- Poor product fulfillment and/or breach of contract
- Misleading products and services
