Life's Big Lesson in a Small Scoop! 5

02 October 2008 वेळ: Thursday, October 02, 2008

De-risking Life.
Have you ever heard of a de-risked business model?
It is a very vital and integral part of doing business intelligently and effectively. I will explain you: De-risking business means you have business spread across many verticals, sectors, customers, geographies and products. It means that business is diversified and doesn't depend on any one of the above elements entirely for its functioning. This helps in eliminating the risk of drawing losses if any one of them fails. That means that the impact of loss is negligible as we still have other verticals, sectors, customers, geographies and products which continue generating profits.
The other day over a business lunch we were discussing how one of our acquaintances lost all his money in Lehman Brothers fall. I had commented at that time that if he had planned his investments in a way that he was not entirely dependant on one Bank for his savings and he would have distributed it against the other banks as well, he would have marginalised his losses. At that moment I could clearly visualise a parallel between Business and life.
Allow me to explain, first and foremost the above example clearly explains we should not restrict our core dependencies to one aspect. i.e. Our life should not be dependant on any one person, one activity or one interest in any way.
For example, when you are so head over heels in love that you eventually sideline other people who have contributed towards your life. Excessive dependence on this love of your life, makes him callous and he starts taking you for granted. This might lead to his ignoring you and you may loose your self-worth. Most of these lop-sided love stories often crumble in to a break-up.
At that time you need people who understand around you but in your quest towards getting love you have lost their respect. Hence, if you have a person-centric attitude, your whole world revolves round that person and if he leaves you, your life crashes like sensex in a bear market. If you are surrounded by friends and family and you do not have emotional dependence on just one single person, then your loss is absorbed easily as time passes and you are back to your cheerful self in matter of few days.
Another example is that of an activity that you might love enjoying. If we go by the dictum of Law of Diminishing Marginal Utility, everything that we do brings about a diminished sense of satisfaction. That means if you love indulging in dance, you might get bored of it after sometime. So, to fill your time you resort to something like playing Chess but that doesn't please you much coz you love only dancing. Lets assume becoz of a fractured knee you cannot dance. Then you wish you had practised an inclination towards something else also so that would filled the void at this time
From these two examples, I am trying to propagate the ideology of living to the fullest. Life is too short to be spent depending on a few persons or interests. You should open your heart to meeting new people and learning new things and enjoying when at it. A de-risked model of life brings about fulfillment, confidence, joy, learning and has a reduced impact when you collide with physical, emotional and financial loss as it gets distributed. You need your shock absorbers when you are heavily dependant on shock givers!
The more you clutch on to things, the more you make other persons and other things indespensible, the more you give the control panel of your life in others hand. Drive your own life don't be driven by external elements. Trust me this might be the missing link between you and your happiness!
Try it! Works Wonders!!!!

4 प्रतिक्रिया

  1. Khyati Says:

    Good one....this is the reality of life well expressed....

  2. Clifford Says:

    After reading this I want to say - Ketaki let's shift our focus from life issues onto business. You have the brains and the stratergic planning capacity. I was serious before when I said let's start some business together. What say!

  3. Sandy Says:

    Wow, Ket you rock! :-) Another very interesting article from you. Since I am interested a lot in Business and Investments I know quite a lot of De-risking business / assets and importance of a diversified portfolio. But I never thought of making a connection between them and life. Your articles and thoughts bring in a fresh perspective.
    Good going and keep writing.

  4. Spcjnky Says:

    okkkhhheyyyy !!! dat was heavy ... but true ... now i knw wat a "De-risking business model is ! ket uz absolutly right wen talk bout " us depending on 1 single person " dey really do take us for granted .. and one fine day dey dissapper .. leaving us all alone :-( .. and ur de-risking model thing would really work for me .. apart from that .. well written gyal .. as i said in ma earlier comments m not qualified to comment ! uz jus to cool .. aapka thought process jus rocks !!

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