Profit got a red card (flag)

It’s Sunday, time for a double espresso at Costa and a frugal portion of news and opinions from The Sunday Times.

The Business section presents Bronek Masojada Chief Executive at Hiscox “An underwriter at Lloyd’s of London, the company largely specialises in niche areas of the market, offering property and casualty insurance aimed at companies and high net worth individuals, as well as cover against such risks as hacking, kidnapping and satellite damage.”

I like biographies and (auto)biographical texts and when I read I usually look for hints to people’s moral values which form their stronger opinions. I then try to link them to whatever spiritual foundation I suspect it has brought them into their system.

A few words from the article fit into this criteria of mine such as the following:

If [something] is too complicated, don’t do it, because it means you don’t really understand it,” he said.

“The more complex something is, the more likely it is to go wrong.”

I would add that this applies to the first stages of a business and the ones close to its end, although one could hardly discern when this end is near.

Yes, complicated running together with excessive profits (as you can read further down) should be a sign of troubles ahead for any type of organisation not only businesses.

“One thing he will not do, however, is demand that growth happen within a certain timescale, because it’s sort of thing that encourages people to take excessive risks. “Doubling [the business] is easy. You just sell too cheaply and everybody comes to you…”

This is what I always thought of when trying to figure out why one organisation or other (not only businesses also any organisation such as religious, non-profit, governmental etc) end up in the pit after a glowing start. Un-balanced enthusiasm and the greed born out of it are always a catalyst for disaster.

…Unexpectedly high profits in a particular area are not something to celebrate¬† so much as a red flag.

Companies examine things carefully when they lose money – they should be just as curious when things go unusually right.

Moderation, one of the most celebrated virtue in almost all the main religions, is the key to understanding what makes a project viable. The excess is always a bad thing. In the light of Christian teachings success should always humble one’s spirit and put him on alert because with success comes responsibility. Beyond a certain point one is no longer a proprietor but an administrator.

Note. Evidently my thoughts are only inspired by the article and could be or not far from its theme or intention

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