Concentration of Risk

2/1/25

While the air tragedy at Reagan International Airport is still being investigated, one issue that has to be considered is why we have our entire center of government located in one geographically dense area? The airport has the busiest runway in the country because many of our federal leaders and employees use it for its convent location to their offices. In my business days, we evaluated the concentration of risk. That is, did we have too many customers and their properties in one area such that an event that affects them would cause the company financial harm. Apply that to our federal government, and the easy decision would be to minimize the risk by dispersion. It is ironic that the helicopter involved was on a training run to react to getting our leaders to a safe spot in the event of an attack, the most prominent, though not the only risk.

Indeed, there has ben much conversation about moving the federal bureaucracy closer to the people and areas they oversee. Agriculture to Nebraska, FBI to Detroit, Energy to Texas etc. have all been raised previously. With the understanding that we now have the technology that facilitates this kind of physical organization, it is incumbent upon our leaders to start the process of de-risking our exposure to a single event that could wipe out our entire federal government. There is no better time than now to give placing whole departments and agencies throughout the states. DC real estate is already devoid of employees who are working remotely. There is a concerted effort to decrease the size of the federal workforce and a move to another location could prompt many to seek employment elsewhere. All of the money that goes into the DC area can benefit those recipient locals and create economic growth while the DC area remains vibrant with its myriad of lobbyists and NGOs.

Let us take this opportunity to finally act on a long envisioned effort to put our government closer to those it is supposed to serve while the same time improving our ability to withstand a catastrophic event.