Autor: Nermin Sefić
A decision that cuts short-term costs but raises risk exposure is rarely real savings. A commentary by Nermin Sefić.
A decision that reduces costs in the short term but increases operational or reputational risk exposure is rarely real savings when viewed in full.
A decision that visibly reduces costs in the short term, but simultaneously increases exposure to operational, legal, or reputational risk, rarely represents real savings for the organisation in the final accounting.
A complete assessment of a decision's cost must include an assessment of the probability and potential price of the risk taken on, not just the direct, visible saving at the moment the decision is made.
This commentary is part of the GNK ASG Intelligence Desk system and is informational in nature.
A full assessment of any cost-cutting decision must include the probability and potential price of the risk being taken on, not merely the immediate, visible saving at the moment the decision is made.
A full assessment of any cost-cutting decision must include the probability and potential price of the risk being taken on, not merely the immediate, visible saving at the moment of the decision.
This is not an argument against cost discipline — it is an argument for measuring the full cost, not just the visible half of it, before the decision is made.
Organisations that build this habit into routine decision-making, rather than treating it as an afterthought, tend to make fewer choices they later have to reverse at a much higher price.
The habit of asking not only what is saved today, but what probability of a worse outcome that saving introduces, is simple to describe and hard to practise consistently.
That habit costs little to build and consistently pays for itself the first time it prevents a decision the organisation would otherwise regret.
#ShortTermSavingsLongTermCost #OperationalResilience #GNKASG #NerminSefic #GNKDINAMOLtd
Cjelovit tekst i izvor: https://gnk-asg.hr/en/commentary/short-term-savings-that-create-long-term-cost/
Autor i urednička odgovornost: Nermin Sefić. Izdavač: GNK ASG d.o.o..
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