Prevent Avoidable Exposure by Sharing Critical Information

Not sharing critical information with the stakeholders can expose you to avoidable risk. Here is an interesting forward that proves the point:

A man is getting into the shower. His wife had just finished up her shower and the doorbell rings. The wife quickly drapes herself in a towel and hurries to answer the bell. She opens the door and sees Bob, the next door neighbor standing at the door.

Even before she could say anything, Bob says, “I will give you $500 to drop that towel.”

She thinks for a moment and drops her towel, standing naked in front of Bob.

avoidable-exposure

As promised, Bob hands over $500 to her and leaves. The woman wraps herself back in the towel and goes back to the bathroom to dress herself up.

When she gets back, her husband asks, “Who was that?”

“It was Bob, the next door neighbor,” she replies.

“Great!” the husband says, “Did he say anything about the $500 he owes us?”

Moral of the story:

If you share critical information pertaining to credit and risk with your shareholders in time, you can prevent avoidable exposure.

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