Note: This post was originally published on LinkedIn in Sept 2023.
Measure it, manage it. It's a mantra I often use. Measuring things allows us to mitiage, remediate, calibrate, communicate, be transparent etc.
Earlier this week I read a LinkedIn post from HM Treasury. It struck me because of the message (Endometriosis - of which I was unaware) and the courage of the presenters. The awfulness of no diagnosis or mis-diagnosis. Not knowing how or what to measure can lead to dreadful outcomes.
(https://lnkd.in/ewMM_auf)
But sometimes we can measure too much. I found this piece by Vera Cherepanova an interesting take on transparency. Likewise, with DLT we often get "captivated by magical thinking that transparency will solve all our problems." Sometimes mandatory reporting is not what we want - it is what we are reporting.
( https://lnkd.in/eM3wUe6P).
Like most control frameworks, ours also incorporates industry best practice. I picked up this BIS paper on CCP non-default losses and thought I would find a nice list of all the items to check for. But if fact, it is most often common sense and experience that tells us what to look for. Our experiences are what gives context to what we are measureing for.
"Scenarios and assumptions concerning potential losses are commonly informed by expert judgment from both internal and external subject matter experts given the inherent challenges of modelling potential losses in what are low-probability, high-impact events with limited historical data." (2.1.2 p8).
(https://lnkd.in/ezJH2wT3),
Measuring things also means that we need to act or re-act.
"If a sense of urgency is both necessary and detrimental, this results in a dilemma. Management must simultaneously create pressure/urgency and refrain from doing so.....the problem is that urgency invokes a prevention focus. A prevention focus favors upholding current standards, risk aversion and error avoidance, something that is highly efficient in creating a faster set response. However, it is not sufficient in situations where new, creative solutions are needed."
https://lnkd.in/eyj_f8Nz
Sometimes, none of the above matters. Clarity, purpose and conviction clearly project the path forward. The project path and trajectory is clearly defined. Who cares who invented the scales?
Just Do It! Get at it!
This is the beauty of T-Cup: Think Clearly Under Pressure. (Clive Woodward's words in preparing England to win a world cup).
By whatever measure, whatever your leisure, may it be a pleasure.
The blindfold, sword and scales all have a role to play.
https://lnkd.in/eieWVC8a
Measure it, manage it. It's a mantra I often use. Measuring things allows us to mitiage, remediate, calibrate, communicate, be transparent etc.
Earlier this week I read a LinkedIn post from HM Treasury. It struck me because of the message (Endometriosis - of which I was unaware) and the courage of the presenters. The awfulness of no diagnosis or mis-diagnosis. Not knowing how or what to measure can lead to dreadful outcomes.
(https://lnkd.in/ewMM_auf)
But sometimes we can measure too much. I found this piece by Vera Cherepanova an interesting take on transparency. Likewise, with DLT we often get "captivated by magical thinking that transparency will solve all our problems." Sometimes mandatory reporting is not what we want - it is what we are reporting.
( https://lnkd.in/eM3wUe6P).
Like most control frameworks, ours also incorporates industry best practice. I picked up this BIS paper on CCP non-default losses and thought I would find a nice list of all the items to check for. But if fact, it is most often common sense and experience that tells us what to look for. Our experiences are what gives context to what we are measureing for.
"Scenarios and assumptions concerning potential losses are commonly informed by expert judgment from both internal and external subject matter experts given the inherent challenges of modelling potential losses in what are low-probability, high-impact events with limited historical data." (2.1.2 p8).
(https://lnkd.in/ezJH2wT3),
Measuring things also means that we need to act or re-act.
"If a sense of urgency is both necessary and detrimental, this results in a dilemma. Management must simultaneously create pressure/urgency and refrain from doing so.....the problem is that urgency invokes a prevention focus. A prevention focus favors upholding current standards, risk aversion and error avoidance, something that is highly efficient in creating a faster set response. However, it is not sufficient in situations where new, creative solutions are needed."
https://lnkd.in/eyj_f8Nz
Sometimes, none of the above matters. Clarity, purpose and conviction clearly project the path forward. The project path and trajectory is clearly defined. Who cares who invented the scales?
Just Do It! Get at it!
This is the beauty of T-Cup: Think Clearly Under Pressure. (Clive Woodward's words in preparing England to win a world cup).
By whatever measure, whatever your leisure, may it be a pleasure.
The blindfold, sword and scales all have a role to play.
https://lnkd.in/eieWVC8a
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