Navigate Complexity with Grit
I had the pleasure of meeting my Year 12 Son's Maths teacher last night at Parent Teacher Interviews. She was an engaging and passionate individual, so I could immediately see why my son was doing so well in class.
Her feedback was about his approach to Complex Unfamiliar equations. And in response to his question about how he can do better, she said "One word. Grit. Do not be put off that you don't know the answer immediately, this is the fun and challenge of complex unfamiliar equations." I immediately saw the life lesson - translating this mathematical language into risk management context and wanted to share with you here today.
🧩 Imagine you're faced with a complex, unfamiliar mathematical equation. It's daunting, filled with symbols and numbers that seem indecipherable at first glance—much like a retail bank encountering a new risk management challenge.
🔍 Just as a mathematician breaks down an equation, identifying known quantities and relationships, a bank must dissect its complex risk issue. Each component—whether it's customer transactions, regulatory compliance, or technological infrastructures—needs to be mapped out and understood in relation to others.
🛠️ Solving the equation, like managing risk, involves applying the right techniques. This could mean using historical data or experience, predictive analytics, or scenario analysis to forecast potential outcomes. It's a dynamic process, requiring constant adaptation as new information surfaces and conditions change.
🔄 The key to navigating this complex landscape? Continuous review and reassessment, ensuring strategies remain effective and responsive to new data.
🚀 Next Steps for Risk Managers:
1. Break Down the Problem: Categorize the components of the risk and understand their interconnections.
2. Choose the Right Tools: Employ appropriate analytical methods to assess each aspect.
3. Monitor and Adjust: Stay vigilant and ready to recalibrate strategies based on emerging trends and performance indicators.
💡 Navigating risk is an iterative process demanding both creativity and precision, akin to solving a challenging mathematical problem.
August Advisory
#RiskManagement #ProblemSolving #Grit #Leadership