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Coping strategy: Difference between revisions
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*'''Exoneration''': means by which you, personally, avoid being blamed for things that did happen and were catastrophic. Disclaimers, disclosures, weasel wording. | *'''Exoneration''': means by which you, personally, avoid being blamed for things that did happen and were catastrophic. Disclaimers, disclosures, weasel wording. | ||
The running cost of exercising coping strategies is inversely proportional to their usefulness. | The running cost of exercising coping strategies is inversely proportional to their usefulness. | ||
'''Avoiding''' emergent risks by having expert managers to scan the horizon for them as you go is a full-time, up-front cost and, you know, if you pay monkeys you get peanuts. | |||
'''Setting limits''' and then managing them is easier, seeing as a machine can do the heavy lifting there, but you generally need risk officers to set the limits and operations staff to keep an eye on them. | |||
'''Enforcement''' is a bit cheaper yet: there’s all that unseemly haggling about [[NAV trigger]]s upfront of course, but then, beyond monitoring to see if they have been hit, which is no more of a burden than monitoring credit lines, it is free, for all agreements, for all times, except those troublesome handful you actually need to enforce. Even that is pretty cheap, if you have been margining properly but should you get into a squabble that needs a court to sort it out, those costs will rise. | |||
There is also a halfway house which is ''having'' legal protections but, having signed the docs in 2003 and stuck them in a drawer, not knowing what they are {{shitfan}}, and only then finding out through the voyage of discovery which is calling up the [[legal eagle]]s and asking what them what the hell to do. | |||
'''Exoneration''', needless to say, costs nothing day-to-day until after the fact, at which point it is both useless and ineffective. If the loss threshold is high enough, you ''will'' get fired. | |||
So what is the lesson with coping strategies? ''You get what you pay for''. | |||
===Accidents=== | ===Accidents=== | ||