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

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 […]

Don’t forget about periodic maintenance

March 20, 2024

Don’t forget about periodic maintenance Just as most automobiles need periodic maintenance, keeping your data as […]

Users Groups are ALWAYS Valuable

March 13, 2024

Users Groups are ALWAYS Valuable I am a huge fan of users groups. (Here’s a […]

But will you DO anything with that data?

February 28, 2024

But will you DO anything with that data? I frequently exhort my clients to always answer […]

It’s not what happens, but how you react…

February 21, 2024

It’s not what happens, but how you react… “It’s not what happens to you, but […]

Saying it and doing it are two different things

February 14, 2024

Saying it and doing it are two different things When I work with my clients […]

Benefits downstream are difficult to implement

February 7, 2024

Benefits downstream are difficult to implement In my 25 years of consulting, one of the […]

Scroll to Top