Gary W. Patterson - Why Risk Management: Systems for Making Informed Financial Decisions

Why Risk Management?
Systems for Making Informed
Financial Decisions

By Gary W. Patterson-The FiscalDoctor

AudioInk Publishers

Issaquah

A Division of Made For Success, Inc.

www.AudioInk.com

Copyright 2012 Gary W. Patterson

AudioInk Publishing

P.O. Box 1775

Issaquah, WA 98027

USA

Interior Layout by AudioInk

Cover Art by AudioInk

Extracted from Million Dollar Blind Spots

All right reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage or retrieval system, without permission in writing from the author.

The information in this publication is based on the current state of commercial and industry practice, applicable legislation, general law and the general circumstances as at the date of publication. No person shall rely on any of the contents of this publication and the publisher and the author expressly exclude all liability for direct and indirect loss suffered by any person resulting in any way from the use of or reliance on this publication or any part of it. Any options and advice are offered solely in pursuance of the authors and the publishers intention to provide information, and have not been specifically sought.

ISBN: 978-1-61339-278-2

Distributed by AudioInk www.AudioInk.com

For further information contact AudioInk Publishing, 1-425-526-6480

Think of this book as a combination of enterprise risk management (ERM) on a beer budget and, in effect, enterprise risk management on steroids.

This book will help you to understand the difference between your organizations deep-rooted problems that never seem to get resolved, and the symptoms that sometimes get treated, but are usually ignored until its too lateif not for the organization, then certainly for someones reputation or career.

What you hold in your hands is the essential guide for leveraging the processes and insights that Ive gathered to help companies large and small, in industries and sectors far and wide, identify and act on their blind spots. Here are the vital tools to uncover your million dollar blind spots, which stem from financial or operational mistakes, management behavior, or poorly applied technology. Any functional department has the potential to create or correct million-dollar obstacles. Blind spots are opportunities and risks, and you can anticipate, eliminate, or control them.

This is where you come in. As an executive, are you asking the right questions? Are your people sharing with each otherand youthe right information? Have you earned your seat at the leadership table? I wrote this book for the leadership team: board members, the chief executive officer, and the C-level heads of each business function (sales, marketing, finance, operations, technology and human resources). This book treats your business with a physicians discipline and shows you where making simple but profound changeseducating yourself on best practices and evaluating your business across the boardwill lead to a happier, healthier and longer business life

By following this guide youll begin to put more money in your pocket. Build on the information in this book to lock down real numbers, useful metrics, honest assessments, supercharged management teams, unflinching accountability, and a healthy corporate culture. And youll live the life you want.

Millions of dollars are hiding in the companys books.

Millions of dollars are falling into recurring cash sinkholes.

Millions of dollars are spent on the wrong technologies.

How this book works

• Session 1 ties it all together with tools to help you realize your personal and professional goals, take hold of your future, and work from smart, real-world figures.
• Session 2 is a bonus stress test youll need to undertake the next steps in your organization.

Finally, this book is stocked with a solid personal coaching resource section to help you shepherd new million-dollar opportunities into reality. Put these real-world tools to work on the three issues you feel are most important to achieve success and youll move further away from the starting gate, and further ahead than the competition.

Think of the value youll derive from selling more, further, faster, with more customer value, and with more engaged, motivated, and aligned employees. Think of the value youll derive from accelerating revenue growth for a new product in the next year. This book shows how you and your leadership team can work together, possibly for the first time, to nail the numbers and fund your own way forward.

You define your millions. They can mean a substantial percentage of sales. In fact, if the company's sales are only one million dollars, youre really talking about thousands, at least in the short term. Pay attention to your numbers, use them to help you grow, and one day your sales will hit millions--or even billions.

When we discuss the CEO or boss, imagine your bosss boss. If you adopt the frame of reference of your bosss boss, you will increase your alertness to the big picture, and help you deliver more salient information where its needed. It doesnt matter whether your company is public or private, large or small. Apply these truths across the board, and save money.

My expectation is that youll refer to this guide often in the future, particularly when you are evaluating business challenges from a variety of new and valuable perspectives. Youll unlock ways to turn your functional area into a dynamic engine for growth, drive revenue gains, and spark more profitable communication with your boss and your bosss boss.

Use this book to learn how to earn your seat at the table.

Communicate strategically

Each chapter reminds you how to communicate effectively, strategically, with those around you. (Weve chosen the male gender pronoun, but we mean both men and women). The best way to accomplish that is to begin each day at work by putting yourself in your bosss positionand in his bosss position, to the best of your ability.

Odds are your boss is thinking:

• I need to know...
• I dont know
• Why arent you telling me?
• How can I help you tell me?

Help them fill in the blanks. Help your business sell more, provide higher customer value, attract and retain top talent, account for profits and losses, and lead its industry. Be generous with information. Be curious about solving problems. Be brave in your approach to teamwork.

• Do you have the courage to share information?
• Do you have the creative curiosity to seek it out?
• Do you have the passion to power through fear, and shatter limitations?
• Are you willing to share the glory when you succeed?

Whatever your functional area, consider the following:

• You know your functional area of expertise. Do you know the core truths of other functional areas? Do you understand their mission the way you understand your own?
• Do you have the courage, conviction, and confidence to share your departments core strengths and to help other departments work with you, not against you?
• Do you believe you and your department have value to offer other departments?

You have more power than you realize. There is free money all around youpotentially millions of dollars beyond insurance. Im looking forward to helping you find it.

Lets get started.

Section 1
Tying It All Together

Chapter 1
Harnessing the Million Dollar Blind Spots Process

Youve heard the saying, None of us is as smart as all of us. Experience shows its true. Youll go farther if you ramp up teamwork inside your functional area, throughout your sphere of influence, and across the company as a whole. Help yourself help others. To put this chapter in perspective, consider that there are three key pieces to tie together this process.