Peace of mind?: Invest in prevention and resilience
Friday, 6 May, 2011 Leave a comment
The age of overpaying to Financial Institutions for inferior products and services – particularly those firms whose raison d’etre is to strip customers of promised value in order to fund excessively complex, over-remunerated and inflexible infrastructures – MUST BE NEARING AN END!
Business models that have become reliant upon quantity (turnover and market share) or unsustainable – unjustified – charges or commissions do not enjoy the trust or respect of their customers and WILL become increasingly exposed and fragile.
Savvy, business-people are the future “Risk Leaders” whose organisations will prosper in the emerging commercial landscape. They understand that by creating a culture of “risk prevention”: identifying and managing sources of risk, they can reduce the cost of and reliance upon “outsourced risk protection”. In the process building more knowledgeable, agile and resilient business systems. One of THE great wisdoms would suggest that genuine “peace of the mind” can only come from within and it holds-up when applied to a business!
“…had banks in the US, the UK and elsewhere heeded the advice NOT to accumulate large exposures to low-probability, high-impact events, the after effects of the financial crash might not still be with us. Though, of course, at the time they would have made less money. Capitalism is about incentives and disincentives about saying yes and no, but if companies automatically disparage the nay sayers or negative advice then companies are treating risk management with contempt”