Do the benefits outweigh the risks?

Do the benefits outweigh the risks?

As the economist Thomas Sowell points out, there are no solutions, only trade-offs. Every decision we make, every day, involves trade-offs.

Another way to look at this is, given a choice of one path vs. the other, will the benefits of that choice outweigh the risks? Is there more upside than downside?

I was reminded of this recently when a client was trying to make a decision about whether or not to manage the financial detail of all transactions in both the AMS and FMS, or the AMS only. Traditionally, the AMS manages the detail while the FMS manages summary data, but some organizations will manage financial detail in both systems. There are, of course, pros and cons to both approaches. But after a lengthy discussion, the client decided that the risks of putting all the detail in both the AMS and the FMS were greater than the benefit of having that detail in the FMS would bring. In other words, the risks did NOT outweigh the benefits.

So as you're weighing a decision, always consider the trade-offs. And if you need to, ask yourself, do the benefits of this decision outweigh the risks?

Wes's Wednesday Wisdom Archives

Rather than adding something new, try subtracting

May 29, 2024

Rather than adding something new, try subtracting I read recently that sociological research suggests, when presented […]

It’s always people, process, and technology

May 22, 2024

It’s always people, process, and technology I speak and write a lot about people, process, […]

Once it’s lost, trust can be difficult to regain

May 15, 2024

Once it’s lost, trust can be difficult to regain I recall hearing once long ago […]

Share your successes!

May 8, 2024

Share your successes! I was speaking at an association meeting recently and one of the points […]

What are YOUR data integrity reports?

May 1, 2024

What are YOUR data integrity reports? Sitting in an AMS demo with a client recently, […]

You might have to do SOME of the work yourself!

April 24, 2024

You might have to do SOME of the work yourself! Many, many years ago I […]

Don’t manage to the exception!

April 17, 2024

Don’t manage to the exception! One of the universal truths about data management is, wherever possible, […]

It’s always about improvement

April 10, 2024

It’s always about improvement Talking with a client recently, she expressed frustration about one particular project […]

Don’t be a hoarder!

April 3, 2024

Don’t be a hoarder! The simple truth is that it’s almost “free” to collect data. […]

With data analytics (as with most things), keep it simple!

March 27, 2024

With data analytics (as with most things), keep it simple! Over the past several years […]

Scroll to Top