The stock market crash in China has already wiped billions of dollars off personal fortunes. Taken with the imploding price of oil, it’s been posited that China’s economic ill health might yet sound the retreat in foreign direct investment and capital to the West to the tune of $1.23 trillion.
Something, somewhere seems to have gone wrong and in the world of financial services and investment, the domino effect could be damaging and long-lasting.
But in times of crisis, should we focus on blame and shame or instead be intent on understanding the problem, solving it and using the experience to improve the system so it doesn’t happen again?
Sir Richard Branson is a man who knows how to make a wise investment. He is also a man who knows that no-one has a monopoly on wisdom – that we all make mistakes.
And it’s knowing that mistakes offer valuable lessons that makes all the difference: by admitting failure and appreciating why we failed we’re one step closer to success.
Or as the goateed guru puts it himself: “Do not be embarrassed by your failures. Learn from them and start again.”
Another Sir who is never embarrassed to put his hands in the air is Scottish businessman Sir Tom Hunter.
Sir Tom is alleged to have lost tens of millions of his personal fortune as investments built up in property and retail during the boom years suffered during the financial crash.
Did he point fingers or blame market forces? No, he admitted his business had lost its focus and that it was “100% my fault”.
Speaking to wannabe entrepreneurs at a seminar, he said: “We had to get back to the fundamentals of why we had been successful and get back to that laser focus we had. It was an expensive lesson, but a lesson nonetheless.”
For anyone working today in the financial services and investment sector this ability of The Two Sirs to be able to fess up and move on is a talent worth nurturing.
Let’s say you’re an Investment Risk Manager.
A key responsibility is likely to be the monitoring and analysis of the market and liquidity risk profiles of investments portfolios.
Do it right and you will provide portfolios that are being managed with an appropriate level of risk, in line with client, regulatory and your own organisation’s expectations.
Do it wrong and you’re putting your stakeholders positioning on a “shoogly peg”, to say the least.
Rather then hiding under the desk, however, and vowing ‘never again’ to look at any level portfolio risk, multi-assets or fixed incomes, treat yourself to a few squeezes of your Minion stress doll, log on, and begin working out where you made the wrong turns, what signals you missed and rebuilding your client’s and company’s trust.
Remember why you’re there in the first place – because you’re darned good at your job.
Looking forward is so much healthier than looking behind you.
The same goes no matter what specialism you might be working in. Business Analyst Financial Adviser or Pensions Administrator? You, too, are entitled to a rare bad day at the office, just like everyone else.
No-one has a crystal ball so, if things go awry of a day, don’t blame invisible fates or destiny: use your analytical mind to identify the problem and target the solution.
And for those Investment Analysts one final piece of advice, as opined by Paul Clitheroe, the celebrity Financial Adviser from the land of Oz: “Invest in yourself. Your career is the engine of your wealth.”
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