BSS12 – Take A Chance On Me – Risk Management

JAKOB: I don’t understand why we thought that this email list approach was effective or appropriate.

ZELDA: Monty said he had had success in the past with the same approach and I didn’t know the law had changed

GARTH: Don’t you lot read the governments feeds?

ZELDA: (incredulous) Errr, no!

BRYOCK: Some Italian once said that “In football, you win as a group, you lose as a group; you divide the credit and the blame.”

(All pause to take that concept in)

ZELDA: Look! I told Michaela to do the email list on the basis that Monty had experienced previous success with that approach.  I have to take the blame.

BRYOCK: Ah, I prefer that approach… “A good leader takes a little more than their share of the blame, a little less than their share of the credit.”

ZELDA:  Thanks Bryock, but don’t push it!

JAKOB: We need to become more risk aware

GARTH: Love Risk

JAKOB: Pardon

GARTH: The board game…Risk. Awesome way to spend a Sunday

JAKOB: No, no, no! Risk Management, it’s an organisational discipline really

ZELDA: Sounds boring!

JAKOB: It’s critical but it is so often disregarded.

ZELDA: Well I’ve never done any Risk Management

JAKOB: You do, every day

ZELDA: No I don’t

JAKOB: When you leave your house, do you check your windows and doors are locked?

ZELDA: Well, yes, of course I do

JAKOB: Why?

ZELDA: So I don’t make it easy for thieves to get in and steal my precious things

JAKOB: Exactly, you assess the risk to your “precious things” and reduce that risk by making sure the apartment is secure.  You also have insurance on your contents, I’m sure

ZELDA: No, should I?

JAKOB: (stunned) Yes… Yes, of course you should, what if the place burns down – locked doors and windows won’t help then, will they!?

ZELDA: Good point – so get some contents insurance for my apartment

JAKOB: Yes… (Irritated) No, argh, that’s not my point.  (Trying to be calm, precise and patient) Ok, that kinda helps prove my point. You have placed a value on your so-called precious things and decided to lock them in your house but you hadn’t considered all of the potential events that could take those things away from you.  Theft is one vector which you have reduced, but you hadn’t thought of fire or someone breaking through your window – both of which could be mitigated through proper insurance.

ZELDA: Mitigated, right.  So fit an alarm?

JAKOB: (seriously trying to control himself) Yes, for your apartment, yes, by all means, yes.  Now think about the business.

ZELDA: (pause) We need to install an alarm on our offices?

JAKOB: (strained and confused) Yes, you could do… Hold on, we don’t have an alarm for the premises? (Glancing around)

GARTH: Don’t look at me… Although I have seen some pretty funky building management systems on JumpStartMyIdea.com I could…

JAKOB: (interrupting and getting irate) Yes, Garth, great… Do that. We’ll pick that up later.  All I’m saying is that we need to be more conscious of the threats to the business and make sure we address the ones that could seriously harm us.

ZELDA: Like fire

JAKOB: It’s hot in here! It is hot in here isn’t it?  I think I need some fresh air for a second. (Standing up and walking to the meeting room door).  As a matter of interest, where is the nearest fire extinguisher?

BRYOCK: The fire station is about a mile and a half up the road

JAKOB: Great! Great… Carry on, I might be some time.

ZELDA: Come in

JAKOB: (a tad sheepish) Hi Zelda

ZELDA: (not as positive as normal) Hi J, didn’t think you were coming back

JAKOB: Yes, sorry, I think the heat got to me and this has been quite a month already

ZELDA: Yes, loads of ups and downs to say the least (pausing) I’ve been thinking about what you said and I’ve asked Bryock to setup some better Risk Management processes in the business.  I was wondering if you could help him.

JAKOB: Of course I will.  Katherine could help with putting financial values on the risks so we can have a clearer view of the ones that could cost us the most.

ZELDA: That’s good of you, thanks

JAKOB: I’ve been reflecting on what we’ve done over the past few months and I think that there is a risk, hah risks again! (Pause)  There is a risk that if I carry on propping up the business with my money that you won’t get the true business owner experience of running on cashflow.

ZELDA: (sadly) Oh, well I guess that is what I wanted

JAKOB: Yes, I’m sure that you want to prove to your dad that you did it on your own merits and not because you had a generous friend and investor

ZELDA: Yes, absolutely – So, will I still see you… regularly?

JAKOB: Oh of course, I’m still a shareholder and I need to look after my… My… “Substantial” investment… and you

ZELDA: Me?

JAKOB: (misty) Always be there for you (clearing throat and becoming professional) as an investor, shareholder mentor and coach I mean.

ZELDA: Yeah, sure, I…I knew that

JAKOB: Ok, well, see you at… Um… do we have Board Meetings scheduled?

ZELDA: Blegh! Bored meetings you mean

JAKOB: Eh?

ZELDA: B O R E D Meetings

JAKOB: Oh, hah, yeah, funny… We should though, if nothing else to discuss your success… And risks of course

ZELDA: Sure, I’ll get Bryock to get something in the diaries

JAKOB: See you then?

ZELDA: Will do – cheers (getting back to work)

Jakob Leaves the office