Posted by: kenwbudd | January 14, 2009

Navigating in the Credit Crisis – Top 6 Lessons Learned

Recent Ernst & Young Financial Institutions report on the credit crisis reveals that the top 6 lessons learned are as follows;

  1. Liquidity (cash) is King – 90% agreement in financial institutions (100% agreement in the real world)
  2. Risk needs to be examined across the organisation – 73% (Co-operation means no more secrets, fewer surprises and the avoidance of expense rescue efforts)
  3. Stay tuned to industry trends, dynamics and cycles – 60% (Look outside & Listen! Use the radar, dashboards and the crow’s nest if you have to. There are icebergs about and they will do more than freeze your assets)
  4. The people factor – 40% (You have professional, intelligent staff on board, so use them appropriately. You pay them for their knowledge! They know stuff! Talk to them!)
  5. Prepare for the unexpected – 35% (Analyse, Assess and Mitigate against risk. Think the unthinkable. Develop Backup, Contingency and Business Continuity plans. Jumping onto the iceberg at the last moment is not a good option)
  6. Don’t believe 3rd Party rating agencies or your own marketing hype – 23% (Simplify! The devil is in the complexity. Find the true facts and stick to them. Do your research and check in to reality occasionally, between those long business lunches)
Day 1, Lessons 1 – 6 in the Business school 101 course.

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