Download and customize hundreds of business templates for free
The story of the German tanks challenges traditional thinking about risk management in investment by highlighting the importance of planning for unforeseen and unpredictable events. In the context of the tanks, no engineer would think to plan for a small field mouse disabling a large, well-engineered machine. Similarly, in investment, it's not always possible to predict every risk or event that could impact an investment. Therefore, it's crucial to have a risk management strategy that accounts for the possibility of unexpected events. This could involve diversifying investments, setting aside a contingency fund, or regularly reviewing and adjusting investment strategies.
Question was asked on:
These tanks were not poorly designed. Many have made the argument that German armored units were so well engineered that they were impractically expensive. But no engineer would think to plan for a 20-gram field mouse to disable a 25-ton steel machine. It wasn't the engineer's responsibility to plan for freak events like field mice. It was the commander's responsibility to plan that they may not be able to use those tanks for some reason.
Asked on the following book summary:
How should investors manage the inevitabilities of risk? What are the most powerful wealth-building tools that require little technical skill? How do...
Download and customize hundreds of business templates for free
Do you find it hard to appease investors? Our Investor Report presentation provides the most important talking points in front of board members and stakeholders and allows the investor relations team to highlight recent wins and secure future support.
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC measures how well the company deploys its capital. Use our ROIC & Investment Valuation spreadsheet to compare the efficiency of capital use between companies and make the right investment decisions.
How to clearly show the performance of your organization with numbers? The three financial statements model – which includes the balance sheet, the income statement, and the cash flow statement – remains the tried-and-true representation of financial data across all industries. This collection of financial statements not only allows executive leaders and shareholders to peer into a company’s performance, but also uncovers the story and reasons behind those numbers.
Organize income, cash flow, and balance sheets with out all-in-one Financial Statement Template. It offers monthly, quarterly, and yearly data visualizations with a dashboard to assess the company's financial health. It also generates a PDF ready for export, including all three statements' annual outcomes.