Striking the Right Chord in Risk Management

Scott D. Chase, CCE, CICP, Global Director of Credit, Gibson Inc

Scott D. Chase, CCE, CICP, Global Director of Credit, Gibson Inc

Scott D. Chase is the Global Credit Director for Gibson, the manufacturer of high-quality guitars. Chase oversees and enhances the company’s authorized dealer credit risk management processes while driving continuous improvements, including advancements in technology tools and systems.

With 45 years of experience supporting major manufacturers in the sporting goods and industrial sectors, Chase holds a Bachelor of Science in Business Administration from Colorado Christian University. His professional credentials include the Certified Credit Executive (CCE) and Certified International Credit Professional (CICP) designations, as well as graduation from the Graduate School of Credit and Financial Management at Dartmouth College. A certified educator for NACM, he teaches Principles of Business Credit and Understanding Financial Statements and has authored multiple articles for NACM Business Credit magazine.

Through this article, Chase emphasizes on the need for adaptability and technological integration in navigating global economic challenges while highlighting the evolving role of credit and risk managers in a shifting business landscape.

“Interaction and communication internally and externally have been keystones to our staying on top of events, focus on issues and develop new strategies for managing a highly diverse customer base and product mixture. We continue to look for better products utilizing the “do more with less” philosophy”

Chinese general and military strategist Sun-Tzu was once quoted as saying that, “in the midst of chaos, there is opportunity.” In this environment of high interest rates, international conflicts, stagflation, country risk and tariffs, just to name a few macroeconomic issues that risk managers must work through we surely realize that rising costs threaten to erode some of the efficiencies enjoyed by our retailers and on-line sellers. When you work in a global company, selling a luxury item like pricey guitars you must deal with chaos in every form, in every country and try to circumvent the issues while continuing to maintain a reasonable business risk. Typically, no matter what market your business caters to, you cannot escape the macroeconomic events that create risk. If chaos hasn’t found you yet, stay vigilante because it will.

At Gibson, we state our core values through the strings of a perfectly tuned instrument – E – Empathetic, A – Authentic, D – Dependable, G – Growing, B – Bold, E – Engaged. While AI, other “bolt-on” packages and other machine learning tools have become a large part of our daily work product, interaction and communication internally and externally have been keystones to our staying on top of events, focus on issues and develop new strategies for managing a highly diverse customer base and product mixture. We continue to look for better products utilizing the “do more with less” philosophy.

With a new President and new leadership that supports deregulation and bringing business back to the United States, I forecast a lowering of costs, stimulating innovation and a drive for further economic growth which will lead to reduced prices on many commodities. Already we are finding it necessary to replace suppliers from China to supply important items and lead ourselves away from China dependance. Deregulation also provides small businesses and start-ups to again thrive in open markets.

Credit and Risk Managers employed to protect accounts receivable don’t grow up with the idea that’s what they want to do for a living. They don’t go to school to get a degree in the profession. Clearly, the profession is born out of folks with unique skills and learning from a key individual or mentor who believes they could excel in this role. Learn from those who have gone before you, understanding that it is important to stay on top of changes in technology that move the business forward, whether it’s making change to process or procedures and realize that as you move to new opportunities in new organizations that not everyone does the process the same. Make listening a skill that makes you a better person.

In his explanation of how to strike the right chord, world famous business and management consultant Peter Drucker said it best when stating that, “only three things happen naturally in organizations: friction, confusion and underperformance. Everything else requires leadership”. Being the best through your communication, whether you make guitars or widgets also means you buy into the shared values that make your organization thrive. There will always be macroeconomic issues that create chaos in your organization. Having a leadership plan today to move through tomorrow’s chaos. Drucker also went on to say that “the greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic”. Bold leadership takes every department to the next level and brings new ideas that reduce the pain points in your processes and as a result reduces or eliminates friction, confusion and underperformance.