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What is the real (yet often misunderstood) purpose of a financial reserve?

Observations/Reflections: The Purpose of a Financial Reserve
Status: Dictated and Reviewed
Category: Business Management
Written: 11/29/2011
Published: 01/10/2012

Every leader agrees that financial reserve is necessary, but most think of it as (just) an important form of security. This misses the point. A financial reserve is reminiscent of the stance adopted by an experienced fighter - guard up, hands extended. This extension is critical; it gives the fighter more time to parry an incoming strike. It increases reaction time. The point of a financial reserve is to increase reaction time.

Posted by David Jose on January 10, 2012 5:36 PM |

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