Thursday, December 25, 2008

Risky Business

What is a risk? More importantly, why is it even needed to be taken, if we are perfectly happy the way we are?

The answer could hold roots in the fact that, no life is perfect, no country is safe and no business is ever flourishing. Call of duty, will to survive, just the urge to excel or some unfathomable caprice pushes all of us living beings into inviting that flirtatious temptress(risk) onto our doorsteps.

A ship cannot refute the basic purpose of its existence just because it might have to sail through rough weather. A soldier cannot sit in the safety of home. An industry cannot be stagnant.

On one side there are most of us, who fear risk, and that fact is wholly and truly appreciated by the entire Insurance Industry and a lot inter-related sub-industries. And then there are others, who take outrageous chances and audacious steps.

There are a lot of examples where one small careful step salvaged the entire organisation, and on the other hand when an almost a quixotic deal, became the most important and successful one in the life history of the enterprise. There are ferocious advocates to both sides of the argument as to which one is the wisest way to grow, but what is mutually agreed by both, is the need to understand and manage risk.

World economies, disturbingly interconnected, resemble dominoes, one falls, all fall. In these times, no foolhardy steps are acceptable. So new world peace is risk assessment,mitigation plans, and risk retention to be part of daily business jargon.

I believe, if there is an obvious storm, the shrewdest will hold their precious ship in the harbour, or may by de-tour. The catch is to know, when and where is the storm coming.

Saturday, December 13, 2008

Retail Therapy - To be or Not to be ?

Oct 2007
Mom: "New Shoes?? Once more? But you bought one pair only last week !!? "
Me: "Mom!! I saw these .. and just couldnt stop myself!!"

"True debauchery is liberating because it creates no obligations. In it you possess only yourself; hence it remains the favorite pastime of the great lovers of their own person." Albert Camus (1913-1960). French-Algerian philosopher, author. [The narrator, Jean-Baptiste Clamence] The Fall (1956).

Oct 2008

Mom: "New Shoes !? "
Me: "yeah.. after 1 hour of soul-searching(also for a cheaper pair), I thought I could live with 'em"

In this new age of free falling economies, the dilemma is marked by pandemic post-purchase rationalization by non-chronic self confessed shopoholics (me?).

Post-purchase rationalization is a common phenomenon after people have invested a lot of time, money, or effort in something to convince themselves that it must have been worth it. Many decisions are made emotionally, and so are often rationalized retrospectively in an attempt to justify the choice.

Psychologically, in the phase before purchasing, the prospective buyer (moi) feels the positive emotions associated with the purchase like desire, a sense of heightened possibilities, and an intimation of the enjoyment that will accompany using the product( all these gorgeous things are going to mine mine mine!! wow!! ): afterwards, having made the purchase, he or she (or me) is more fully able to experience the negative aspects: all the opportunity costs of the purchase; and the reduced purchasing power remaining.(shit shit shit!!! why did I have to!.)

Before the act, one has the full array of options, including not purchasing; afterwards, one's options have been reduced to two: a) continuing with the purchase, surrendering all alternatives, or b) renouncing it (never). So that before purchasing, one experiences oneself as acting in a virile way, creating a situation; while afterwards the time of acting has passed: one is deflated and experiences oneself as having been acted on by the former virile self; one feels bound by one's remaining limited choices.

Buyer's remorse can be caused or increased by the knowledge that other people will later question the purchase or claim to know better alternatives.(You bought this in Rs 150?? I got it in Rs30 at Googi's store!)

Extreme shopping activity and any associated remorse is, again, probably a sign of some deeper disquiet and normal "buyer's remorse" should not be confused with the complex emotional dynamics of "shopaholic" behaviour, no more than eating too much on special occasions should be confused with a serious eating disorder such as bulimia.

To all the shopophilic men and women:
As I have already established that "shopping" which we women so gleefully pronounce is not always the most delightful thing we do.

To all the shopoholic men and women:
A purchase, unlike many decisions in life, is invariably either reversible or at least recoverable and should not be a source of enormous anxiety.

:)