The Greatest Risk IN THE HEART OF THE SEA The tragedy of the whaler Essex was that the owners gave George Pollard Jr. the job of captain. Risk is a measure of exposure to danger in a situation. Risk is extremely important to understand in a project, in management, in investments and in everyday life situations. Because individual risk can be a choice, such as riding a bicycle into oncoming traffic, or we can be exposed to risk without even knowing it, such as the chemical company illegally dumping waste into drinking water. Understanding risk is an important concept for achieving your goals. If you are able to identify the risk, the risk itself could be eliminated or reduced to achieve a successful outcome. The owners of the Essex must have been very successful in how they ran their operations considering that the Essex was one of the oldest ships on Nantucket at the time of the ship's last voyage. This leaves little incentive for owners to invest in the vessel or crew. Risk-taking pays off, but companies should have a clear conscience and paternalistic employment practices will develop, which will consolidate employee loyalty. (Matsushita, 1988). When the Essex left port for the last time, the ship and crew had the odds stacked against them. “What is bought with money or goods is bought with work, just as what is bought with the toil of one's body. They contain the value of a certain quantity of labor which we exchange for what at that moment is supposed to contain the value of an equal quantity." (Smith, 1991). The owners essentially place little value on the captain and crew from their actions; examples are the lack of training of the crew, the captain and his companions, the scarce resources on the ship... middle of paper... The practice of management. In P. F. Drucker, The Practice of Management. New York: Harper & Row. Goleman, D. (1997). Emotional Intelligence. In D. Goleman, Emotional Intelligence. New York: Bantam.Maslow, A. (1987). Motivation and personality. In A. Maslow, Motivation and personality. New York: Harper & Row.Matsushita, K. (1988). Seeking prosperity. In K. Matsushita, In Search of Prosperity. Kyoto, Japan: PHP Institute. Philbrick, N. (2000). In the heart of the sea The tragedy of the whaler Essex. In N. Philbrick, In the Heart of the Sea The tragedy of the whaler Essex. London, England: Penguin Books.Smith, A. (1991). The wealth of nations. In A. Smith, The Wealth of Nations. Amherst, NY: Prometheus Books.Taylor, F.W. (1911). The principles of scientific management. In F. W. Taylor, The Principles of Scientific Management. New York: Harper & Row.