spread your risk!

spread your risk!

OK! let’s not make jokes about the fact that depositors at ICESAVE Bank in Iceland have had their money “frozen” as the parent Landsbanki goes into administration. This is serious stuff!!
I remember a few years ago I was at a Madrid hotel when one of my business colleagues had her handbag stolen. An insurance industry colleague also there explained how he could never understand why women used handbags. “When i travel” he explained, ” I put my passport in one pocket, my credit cards in two others, my front door keys in an other etc etc”
“Typical for an insurance man” another colleague joked.” Spreading your risks like usual!”
In these turbulent times, when even banks look decidedly shaky, I think my insurance friend would give good advice. If you’re looking at depositing money, don’t put it all in one institution. Spread it round. In this passage of economic turbulence, nothing should be taken for granted.
It’s the same for businesses too- spread your risk. I heard of a company last week that got into serious cash flow problems because 90% of its sales were made to one large corporation that was paying way beyond the contracted payment terms.Different scenario, but the business logic remains the same.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource