Reviews Abigail Murison

The Black Swan Problem: Risk management strategies for a world of wild uncertainty

By Håkan Jankensgård (Wiley), ebook

Black swans – described as highly unpredictable events that fundamentally change the world we live in – are not only transformative for society, they can make or break businesses. Here, academic and risk management expert Håkan Jankensgård considers how a board of directors might prepare for the completely unexpected – beyond tail risk management.

One of Jankensgård’s key points is that responsibility for black swan risk management must lie with the board – especially since rogue executives, including the CEO, can be a potential cause. As a guideline, he points to the 1% rule: a company should spend 1% of its time and resources preparing for ‘extreme’ events.

Using his own research based on publicly available company financial statements, Jankensgård outlines some strategies directors, risk managers and CFOs can use, focusing on practical ways to mitigate the business-critical impacts of a black swan. Some of these tactics include identifying and addressing single points of failure, keeping adequatecash reserves or lending options, or investing in put options.

In particular, Jankensgård says that the company financials should be the single source of truth when modelling how a business responds to risk and what fail-safes should be put in place.

While Jankensgård initially focuses on mitigating the negative risks of black swans, he points out that these events can also present positive opportunities. In some cases, preparations such as cash reserves could allow businesses to buy out their less-resilient competitors, or expand rapidly into new markets created by a black swan.

The Black Swan Problem is a thought-provoking read with plenty of real-life business case studies that should spur action by finance teams, risk managers and company directors.

The Psychology of Money: Timeless lessons on wealth, greed, and happiness

By Morgan Housel (Harriman House), ebook and audiobook

Whether you invest everything you earn into cryptocurrency or keep every dollar under your mattress, venture capitalist and columnist Morgan Housel insists that when it comes to money management, no one is crazy. Instead, we are each a product of our own unique experiences – whether we grew up at a time when inflation was in double digits, or watched our parents or peers lose everything in the 2008–2009 global financial crisis.

He also points out that while money has been around for ages, money management is a relatively new beast. For example, until after World War II people generally worked until they died; the concept of regular folk saving for a comfortable retirement is only a couple of generations old.

In The Psychology of Money, Housel uses the stories of janitor and secret millionaire Ronald Read, Ponzi-scheme shyster Bernie Madoff, McKinsey CEO-turned-insider-trader Rajat Gupta and many others to look at the fundamentals and psychology behind saving, investing and building wealth.

While compounding and stock diversification emerge as essentials, Housel notes investors tend to downplay the roles of luck and patience. Billionaire Warren Buffett, for instance, started investing at age 11: more than 80 years ago. When he was 72, his wealth stood at US$35.7 billion. Now, at 91, Buffett is worth US$117 billion.

The Psychology of Money is a remarkably engaging read, and the real-life stories and examples offer teaching moments for everyone from experienced investors to complete newbies.

The Introvert's Edge to Networking: Work the room. Leverage social media. Develop powerful connections

By Matthew Pollard (HarperCollins Leadership), ebook and audiobook

Networking can be a challenge for even the most sociable among us, but self-confessed introvert Matthew Pollard understands how excruciating working the room can be, when cold introductions and small talk really aren’t your thing. However, sometimes networking is a necessary evil – whether you’re looking for business leads or planning your next career move.

Business coach and speaker Pollard says that introvert strengths – such as active listening and forging authentic, deep connections – actually make them superb networkers. He has developed a set of revealing exercises, short scripts and tactics to make networking more productive and enjoyable. The ultimate aim? To understand what your unique offering is, and build a valuable, long-term network of champions and momentum partners – online and offline.

Pollard starts by exploring what you offer that no one else does. He uses examples from his own client base and network to demonstrate how to implement exercises and strategies that will help grow your accounting firm or find a new role.

Also recommended

Radical Business: How to transform your organization in the age of global crisis

By John A Davis (Emerald Publishing), ebook

While businesses have been major contributors to the problems we face, there is much they can do to effect positive change and become a force for good. John A Davis presents a framework for business leaders to put societal value at the heart of what they do and offers examples of companies that are taking action.

Selling Your Expertise: The mindset, strategies, and tactics of successful rainmakers

By Robert Chen (Wiley), audiobook and ebook

How do you sell your product when the product is you? Robert Chen presents a guide to consultants and knowledge professionals to help them meet their fullest professional potential, consistently sell their ideas, and grow their client base. He equips readers with a client-focused mindset and strategies to find ideal prospects and turn them into long-term clients.

Learn Power BI: A comprehensive, step-by-step guide for beginners to learn real-world business intelligence

By Greg Deckler (Packt Publishing), ebook

Need to get up to speed on data analytics? This guide teaches Power BI from the basics through to advanced features. It reveals how to ingest, cleanse and organise data to unlock key business insights and create quality visualisations, reports and dashboards to share with others.

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The Future of Money: How the digital revolution is transforming currencies and finance

By Eswar S Prasad (Harvard University Press), audiobook and ebook

Cryptocurrencies and the death of cash will fundamentally rewrite the way we live. Eswar S Prasad argues that, along with innovations that reshape how we invest, trade, insure, and manage risk, crypocurrencies will evolve unpredictably as tech giants and central banks join the fray. He examines what’s ahead and how economies will be transformed, both for better and for worse.

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The Case for a 4-Day Work Week

By Juliet Schor, TED talk, 2022

Run time: 12 minutes

Juliet Schor discusses the positive impacts the four-day working week brings, from increased customer satisfaction to happier staff, less burnout and increased revenue. She investigates how companies and governments could make it an accepted reality.

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