Profit & Risk
RISK is too often viewed as synonymous with LOSS. But that is a false view. While losses do occur when there is unmanaged risk, there is also a direct link between managed RISK and PROFIT.
In fact, a bonanza of profit is available to every executive RIGHT NOW -- without generating any additional sales or tapping another revenue source. What is it? The vast array of CORPORATE LOSSES that are needlessly dissipated. Most losses disappear without any management awareness or acknowledgement. Many have become accepted simply as "the cost of doing business."
The link between RISK and LOSS is obvious -- and it has produced during the past 50 years a group of specialized activities all devoted to reducing loss. Ironically -- though each "petal of the RISK flower" attempts to minimize corporate loss -- these specialties are disjointed, fragmented, and even competitive! Further, they are unaccountable for the resources management invests in them. Not one of them can provide "dollars saved per dollar invested."
But there is an answer! These specialties must be managed as an INTEGRATED WHOLE by utilizing "The Systems Approach" -- thereby becoming focused and efficient in "stopping the bleeding away of corporate assets." Remember: every dollar thus SAVED goes right into your PROFIT column -- because they are already earned!
The secret to integrating all risk specialties lies in implementing SMART (Systems Methodology Applied to Risk Termination). Its unique concept of viewing corporate life as a "womb-to-tomb" process of existence provides executives with a fresh perspective that is both simple and all-inclusive.
Profitability is explicit: REVENUES must exceed EXPENSES. Expenses include all losses which, in turn, are linked to THE TOTAL COST OF RISK as shown here:
Grasping LOSS as "earned dollars already gained but later forfeited by management oversight" is not easy. Yet it is a vital truth. The RISK EXTRACTION losses are the key to IMMEDIATE PROFITABILITY -- and SMART is the answer to identifying, evaluating, ranking, and controlling all those losses.