Lesson 1
Lesson 1
A man is getting into the shower just as his wife is finishing up her shower when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she opens the door, there stands Bob, the next door neighbor. Before she says a word, Bob says, βIβll give you $800 to drop that towel.β After thinking for a moment, the woman drops her towel and stands naked in front of Bob.
After a few seconds, Bob hands her $800 dollars and leaves. The woman wraps back up in the towel and goes back upstairs. When she gets to the bathroom, her husband asks,β¦
βWho was that?β βIt was Bob the next door neighbor,β she replies. βGreat!β the husband says, βDid he say anything about the $800 he owes me?β
Moral of the story:
If you share critical information pertaining to credit and risk with your shareholders in time, you may be in a position to prevent avoidable exposure.