Mother’s Day reminds us that real love isn’t about saying ‘yes’ to everything — it’s about knowing when to say ‘no’ for someone’s own good. In credit risk management, tough love isn’t just necessary, it’s the heart of protecting both customers and companies.
Setting Boundaries for Success – Just like a mother sets clear boundaries for her children, curfews, homework rules, or screen time limits, a strong credit risk manager must establish firm credit policies. It’s not about being harsh; it’s about creating a structure that protects the company and helps customers succeed within safe financial parameters. A mother’s rules teach responsibility, and similarly, a credit manager’s guidelines foster disciplined, mutually beneficial relationships between supplier and customer.
Saying “No” When Necessary – One of the hardest lessons mothers teach is that sometimes the answer must be “no,” even if it’s painful. In credit risk management, declining an order that exceeds a limit or refusing to extend more terms to a delinquent customer reflects that tough love. It’s not about punishment but about preventing bigger problems down the road. A loving “no” today can save both the company and the customer from a disastrous “yes” tomorrow.
Preparing for the Worst and Hoping for the Best – Mothers constantly prepare for contingencies like packing extra snacks, carrying Band-Aids, reminding kids to wear a jacket just in case. Credit risk managers, too, must plan for worst-case scenarios, whether that’s a payment default, bankruptcy, or economic downturns. By building reserves and establishing clear terms, a company mirrors a mother’s instinct to protect her family from unforeseen dangers while still encouraging growth and independence.
Rewarding Responsibility and Good Behavior – When a child shows responsibility by cleaning their room without being asked or studying hard, a wise mom acknowledges it. Similarly, in credit risk management, rewarding responsible customers with better terms, loyalty discounts, or higher credit limits encourages positive behavior. Recognition and trust, once earned, can be powerful motivators to deepen a healthy commercial relationship, just like the way encouragement from a parent builds a child’s self-esteem and reliability.
Balancing Heart and Head – Ultimately, both motherhood and credit risk management demand a balance of emotion and logic. You care about the relationship, but you cannot let emotions cloud necessary decisions. A mother may want to shield her child from every difficulty but knows that sometimes letting them stumble is part of growth. A credit manager may wish to help every customer, but must use objective data, financial analysis, and sound judgment to make decisions that protect the health of the business overall.
So, as we honor our mothers this Mother’s Day, let’s appreciate how their care, nurturing and love is not so far away from the same ideas that we credit risk management professionals must apply to our clients and customers.
Your thoughts and comments (nseiverd@cmiweb.com) are most welcome!
Nancy Seiverd, President
CMI Credit Mediators, Inc.
All Rights Reserved
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