Why planning for a rainy day is so important

Irish governments over the years, and especially in the past few, have not shown themselves to be shining examples when it comes to contingency planning.

The most egregious example is the creation of that vortex of wealth destruction that is IBRC where, despite alternatives being presented to the cabinet, a bullheaded politicised decision was taken which shot the economy in the head.

Typically, one plans for the worst and hopes for the best. And some things that are planned for, or should be planned for, are what one might call “grey swans” — low probability, high-impact events. It is unlikely, for example, that we will see a tsunami hit Ireland, but if it did we would be best advised to have plans in place.