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As a former NCAA golfer and avid golf fan who now manages risk, I couldn’t help but be struck by the similarities between a golf caddie and a risk manager. For those of you who share my love of the game, it’s easy see how managing business risks is not unlike playing a round of golf. In golf and in business, there is always a risk versus reward consideration applied to decision-making. While many opt for the risky play on the golf course without much concern for a penalty or lost ball, the same approach is not typically prudent in business.
A risk manager and a golf caddie both:
- Offer you a full-scope view on every play you make to help you understand the risk and reward with each decision.
- Understand and effectively advise based on the current environment, whether it be the markets hardening or the leaderboard bottlenecking at the top.
- Know what the smart play is, and do all they can to encourage you to make the smart play.
- Know when to tell you to go for it.
- Carry the umbrella when it’s raining. Having a trusted advisor makes the most difficult situations easier to navigate with confidence.
Regardless of how you approach business or golf, doing so with a strong advisor by your side to provide guidance on risk-related issues, whether it be a water hazard or contractor’s liability, will ultimately lead to optimized outcomes.
About the Author
Nick Sica is a Senior Analyst with The ALS Group. You can read more about Nick or contact him here.
Click here to request more information about The ALS Group or to learn more about mitigating risk.
Or better yet, discuss your risk management needs over a round of golf with Nick!