The below story will teach you the best management lesson, how to avoid or minimize unwanted exposure.
A man offers $1000 to his next-door neighbor. The neighbor expresses gratitude and promises to return the money within a week.
The gentleman's wife, who lends his money to the next-door neighbor, is unaware that her husband has done so.
After a week, the next-door neighbor comes back to return the money. He rings the doorbell as the wife exits the bathroom wrapping herself in a towel after a shower, and the husband enters the bathroom to have a bath. The woman hurriedly dashes to the main entrance. She notices the next-door neighbor when she opens the door. The lady in the towel astounds the next-door neighbor. Immediately he says, "I will give you $1000 if you drop the towel that you have wrapped". The lady pauses for a bit before agreeing to let go of her towel. She drops her towel, and the next-door neighbor offers her $1000 and walks away after a few seconds. The lady covers herself back with the towel and goes to the room. The spouse from the bathroom inquires, "Who was that?". The lady says, "It was the next-door neighbor." The husband replies, "Oh, great! Is there anything he said regarding the $1000 he owes me?"
What did you take away from this reading?
You can avoid or minimize unnecessary exposure if you properly share the risk and credit information with your shareholders on time. It is one of the most important management lesson new managers should learn.
