Tactic 01
Jamie Dimon, Acquired
Run The Fortress Balance Sheet
The play
Test your plan against the worst case ever, not just the official stress scenario.
Jamie Dimon says
Our stress test should be worst ever, not the stress test the Fed gives us, meaning markets down 50%, interest rates up to 8%, and credit spreads back to worst ever. I run as conservative an accountant as you can find and I don't upfront profits when I can spread them over time. If I make bad loans, they are bad revenues, they will kill you, but for a while they look pretty good. We look right through the cycle at the actual economics of what we do, not the accounting of what we do.
Try this
Today, review one key financial assumption and check it against the actual worst historical case, not the optimistic one.