Sunday, 22 March 2009

Prepare your excuses

Of course, a gamble or a risky decision can appear stupid with hindsight. And others may be in a position to make plausible criticisms. So you should prepare your excuses or escape plan for the eventuality that people do attribute bad outcomes to a decision you made. So start rehearsing some of the following get outs:

Construct scenarios in which decisions other than yours would have led to disaster.

Adapt Gordon Brown’s line “Making no decision could, nay would have been worse than any other decision.”

Tell them business necessarily involves taking risks. E.g. Loaning money to the poor is risky, but that's how banks have been making money for their shareholders for years. You don't make money in finance by taking no risks.

Blame your analysers. “Our highly qualified risk managers calculated the risk was acceptable.”

Say “Of course judgement with hindsight is always perfect, but I was right at the time.”

No comments:

Post a Comment