Presentation Date: Tuesday, June 26, 2018 Michael.pdf · 5/15/2018 2 Instead …Review a Totally...

© 2018 Million Dollar Round Table Million Dollar Round Table 325 West Touhy Ave. Park Ridge, IL 60068 USA

2018 MDRT Annual Meeting e-Handout Material Title: Elevate Your Business Growth by Meeting the

World’s Biggest Unmet Need Speaker: Michael Carpenter Presentation Date: Tuesday, June 26, 2018 Presentation Time: 3:30 - 5:00 p.m. Session Room: LACC - 408 The Million Dollar Round Table® (MDRT) does not guarantee the accuracy of tax and legal matters and is not liable for errors and omissions. You are urged to check with tax and legal professionals in your state, province or country. MDRT also suggests you consult local insurance and security regulations and your company’s compliance department pertaining to the use of any new sales materials with your clients. The information contained in this handout is unedited; errors, omissions and misspellings may exist. Content may be altered during the delivery of this presentation.

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Michael CarpenterElevate Your Business Growth by Meeting the World’s

Biggest Unmet Need

Welcome&

Congratulations

“When you change the way you look at things,the things you look at change.”

- Max Planck –Nobel Prize in Physics, 1918

2Copyright© Michael T. Carpenter, 2018, All rights reserved

NOT talking about…

• Just another “Run-of-the-Mill” business idea

• Short-term strategy with only “limited” potential

• A “Catchy” or “Hot” product idea”

• “New or “Untested approach” that can quickly fade… change… not work

Copyright© Michael T. Carpenter, 2018, All rights reserved3

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Instead …Review a Totally New…

BREAKTHROUGH GAME-CHANGING

REVOLUTIONARY & EVERGREEN

“OPPORTUNITY”

• “Turbo-charge” growth of your “entire business”

• Attract more trust, clients, and much more business

• “Solve” a enormous & growing unmet client problem

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Are you doing as much business as you’d really like?

~

Like to do a “LOT” MORE Business ?

With an established business, it can get complicated

because…BIG ENOUGH “Pay-off” “Opportunities” worth the time, trouble & effort are hard to find

With this idea though…It’s easy!

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Key Steps To Harnessing Opportunities1 … Identify & Recognize

2 … Understand

3 … Preparation

4 … Take “Action” & Grab it!

Old baseball axiom…about fielding ground balls

“Play the ball before it plays you”

Omit any of these steps…and this could apply to YOU

“Most of us never recognize opportunity until it goes to work in our competitor’s business”

– P.L. Andarr

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The most rapidly changing period in history…EVEREverything…Everyone…Everywhere

• How do we humans react to rapid change?• What about the pace of change in the future?• What does accelerating change on all fronts mean?

MORE & BIGGER “Opportunities & Risks”Instability…uncertainties…anxieties…volatility

Hurtling toward us … faster & faster

Our Unique “Opportunity Environment”

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Exercise & Warm-up of your Brain’s…“Opportunity Thinking” Circuitry

Awake…A very special “Super Power”enhances all your professional skills & abilities

Our power to create a“PERFECT” Business Building Opportunity

What characteristics would it have?

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Generic Characteristics of a “Perfect” Business Building Opportunity

Provide something new or not available previously

Identify & meet a previously “Un-met need”

Solve customer problems…alleviate frustrations

• Make their lives simpler• Help enhance people’s lives• Do things better, faster, easier, lower cost• Do things they can’t easily do themselves

Doing so…can result in “Exponential Growth”

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Source Neel Burton, MD, Psychology Today, 09/17/17

Maslow’s Hierarchy of Needs

Deficiency Needs

• Feel anxious & motivatedif not met

• Feel nothing once they are met

Growth Needs• Enables us to “self-actualize”

• Reach our fullest potential as human beings

What are the characteristics ofYour Very Own “Perfect Opportunity”?

Special ExerciseDesign a “Perfect” Business Building Opportunity

Write the characteristics of a “Perfect Business Building Opportunity”…below

1. ______________________________________________

2. ______________________________________________

3. ______________________________________________

4. ______________________________________________

5. ______________________________________________

6. ______________________________________________

7. ______________________________________________

8. ______________________________________________


Review Characteristics of “Perfect” Business Building Opportunities

• Meets enormous & growing “Unmet need”

• New & Different

• Universal appeal & wide applicability

• Not offered by any other professionals•Gives “first movers” a powerful competitive advantage

•Law of Primacy……examples

• Potential customers already motivated to “ACT”•Don’t know how to do it themselves…or where to find it

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• Benefits from accelerating “worldwide” change…plus• With savvy positioning…Makes your services “Anti-fragile”• Increases demand for your services & increases your business

• Instability, uncertainty, unpredictability & volatilityactually help your business and make your job easier

• Enhances your value & complements your business• Helps you “Stand-out” above your competition• Attracts more clients, referrals, assets & business more easily• Perfect platform to justify exploring other ways to be of help

• Rapidly builds client trust, confidence & your success

• Simple…easy to implement…leverages your expertise

Review Characteristics of “Perfect” Business Building Opportunities

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Meeting the HUGE, GROWING, WORLDWIDE

“UNMET NEED”to

Demystify, Understand & Manage “ RISK”(practical, user-friendly, highly effective)

Helping clients everywhere gain greater controlover the full range of risks they face, rather than

have risks control them

What meets all these characteristics ?

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Any “real-life” examples that prove this can actually be done?

Absolutely…Here’s just one example of many…

The Automobile Industry

What global C-Suite level position has grown most dramatically in the last 20 years?

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Who can your clients find to help them?

Why not reposition yourself as your clients’ Financial Advisor & “Chief Risk Officer”

• Become one of the 1st to meet that vast “unmet need”• “Stand-out” above your competitors • Provide an “invaluable” additional service• Attract more business, more easily

Are you a “Master” of Risk Management?

CRO’s now at all major enterprises

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Quick Risk Quiz

Test Your Personal “Risk-Wisdom” I.Q,(Please write your answers in the space directly below each question.)

Copyright ©2018 Michael Carpenter, All rights reserved

… Short timed, 9 question, self-graded quiz

… Everyone have paper to write on?

… 30 - 45 seconds to answer each question

… Be sure to write your answer to each question

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Your Personal Financial Pro “Risk-Wise”® Quiz©What do you know about the “true nature” of Risk

(Please write your answers in the space directly below each question.)Copyright ©2018 Michael Carpenter, All rights reserved

1. What is your definition of “Risk”? __________________________________________________________

***Extra credit question - What generates or causes Risk(s) to “activate”?

_________________________________________________________

2. What are the three basic types or states of Risk?__________________ __________________ ____________________

3. Risk & reward are equally balanced? ☐ True ☐ False (check one)

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Financial Pro “Risk-Wise”® Quiz …. continued(Please write your answers in the space directly below each question.)


4. The two basic approaches or “schools” of risk management are? _______________________ ________________________

Which is best? __________________________________

5. What 4 characteristics of risk must be considered to effectively manage any risk?

________________________ ________________________

________________________ _______________________________

6. Four situations where behavioral scientists have proven that world-wide we humans perceive risks as much greater than they actually are:

________________________ ________________________________________________ _______________________________

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Financial Pro “Risk-Wise”® Quiz …. ContinuedPlease write your answers in the space directly below each question.)


7. What’s the probability of a major, gut wrenching, surprise stock market decline of 8,000 points or more (30%+) in the DJIA over the next few years?

___________________________________

8. Which group of professional is consistently ranked world-wide as the most trustworthy?

___________________________________ Why ? _____________________________

9. The proven steps for transforming almost any risk into just an inconvenience…or even and opportunity are:_________________ _________________ _________________

Source: The“Risk-Wise”Investor®- How to Better Understand and Manage Risk,by Michael Carpenter, Published globally by John Wiley & Sons, Inc. Copyright©2018

Michael Carpenter, All rights reserved, Used with author’s express permission

Professional “Risk-Wise”® Quiz©

Joint Review

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Your Personal Financial Pro “Risk-Wise”® Quiz©Test your personal knowledge of the “true nature” of Risk

(Please write your answers in the space directly below each question.)Copyright ©2018 Michael Carpenter, All rights reserved

1. What is your definition of “Risk”? _________________________________________________

***Extra credit question - What generates or causes Risk(s) to “activate”?______________________________________________________________________

2. What are the three basic types or states of Risk?_________________________ ______________________ ___________________

3. Risk & reward are equally balanced? ☐ True ☐ False (check one)

4. What are the two basic approaches or “schools” of risk management? ____________________________________ __________________________________

Which is best? __________________________________

5. What characteristics of risk (s) must be considered to manage any risk?________________________________ ________________________________________________________________ ________________________________

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Financial Pro “Risk-Wise”® Quiz …. Continued

6. List four situations where behavioral scientists have proven that world-wide we humans perceive risks to be much greater than they actually are:

__________________________________ _________________________________

__________________________________ __________________________________

7. What’s the probability of a major, gut wrenching, surprise stock market decline of 8,000 points or more (30%+) in the DJIA over the next few years?__________________________________

8. Which professional group is consistently ranked world-wide as the most trustworthy?

_________________________________________ Why ? ____________________________

9. The proven steps for transforming almost any risk into only an inconvenience…or even and opportunity are:____________________________ _________________________ _________________________

Source: The“Risk-Wise”Investor®- How to Better Understand and Manage Risk,by Michael Carpenter, Published globally by John Wiley & Sons, Inc. Copyright©2018

Michael Carpenter, All rights reserved, Used with author’s express permission

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Holistic “Risk-Wise”® Risk Management Planning

Directly addresses “ANY” kind of risk… in a way clients intuitively understand

• Based on knowledge, understanding & preparation

• Combines qualitative & quantitative risk management

• Simultaneously addresses both major risk types• External Risks• Internal Risks

• “TILTS” the risk/reward equation to your advantage

Copyright© Michael T. Carpenter, 2018, All rights reserved

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“Risk-Wise”® Risk Management PlanningA proven…non-technical…user-friendly

way to address risks, that resonates with everyone

Who is a “Risk-Wise”® Advisor or Investor?

Those judging their risk/reward decisions correctly& manage risk…following the soundest course of action.

Based on:

• Facing risks in a direct, positive, “pro-active” way

• Knowledge of the “True” Nature of Risk

• Thorough understanding

• Advance preparation for when Risk(s) do occur

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- Just add -

Comprehensive “Risk-Wise”® Risk Management Education, Planning & Monitoringto your advisory services

Improves your business two ways :

1. Free “High-value” service - Enhances your value• Helps you “stand-out• A great “door opener”

• Outstanding basis for exploring more ways to help2. A potential source of additional “fee” revenues

How do you become…A “Risk-Wise”® Advisor &

Personal “Chief Risk Officer”?


“Risk-Wise”® Advisors Recognize

“Knowledge is the antidote to fear”- Ralph Waldo Emerson –

Rapidly changing situations are the primary cause of “Risks” occurring

“We’re facing an avalanche of ceaseless change”

Author Joshua Ramo, The Age of the Unthinkable

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“Risk-Wise”® Advisors Recognize

“Education is the most powerful weapon you can use to change the world.”

-- Nelson Mandela –

Risks we’ve identified, thoroughly understand & are fully prepared for

cannot harm us*

*Although…Risk management can never be perfect

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“Risk-Wise”® Risk Management PlanningHelps anyone better understand & directly manage risk

• Meets an enormous, growing “unmet” global need

• Broad appeal/door opener-clients/investors/prospects

• People are already motivated…• Just don’t know it can even be done…what to do…or how to go about it

• Not offered by other professionals… or anyone else

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“Risk-Wise”® Risk Management PlanningHelps anyone better understand & directly manage risk

• Benefits from accelerating change…instability… uncertainty…volatility…unpredictability

• Enhances your value & complements your existing products & business

• Easy to implement

• Builds client trust, confidence, success & your practice

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Holistic “Risk-Wise”® Risk Management

Takes mystery, risk & fear out of managing the risks of our increasingly less certain world

Fundamentally…The very same method used…

• Managing our everyday, human “Life risks”

• Occupations dealing successfully with “life threatening risks” every minute of every single day•

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Commercial Airlines

Courtesy of Boeing, Corp.32

Armed Services

Courtesy of the U.S. Department of Defense33

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Manned Space Flight

Courtesy of NASA34

Medicine & Surgery

Courtesy of National Institutes of Health

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“Risk-Wise”® Risk Management Planning Steps

Foundation…If it can happen, it WILL happen…We just don’t know when…So plan for it…

Overview of Plan Steps

1. Identify, Assess, and Understand Risk• Both “External” & “Internal” Risks of all types

2. Review & analyze risk management alternatives

3. Evaluate risk/reward trade-offs

4. Decide to act/not act then proceed…or…research more

5. Ongoing risk monitoring & risk/reward decision making


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1. Personal Risk Identification & Assessment

1st Define Risk- Why?- Restrictive or “empowering” ?- Gain client agreement on your “shared definition”

2nd Identify Risks - What we can learn from an old “Russian proverb”- Both “External” & “Internal” risks of all types

3rd Understand Risk- Exposure, likelihood, impact, resilience

4th Prioritize Risks- Determine which risks to…

a. Avoidb. Accept & managec. Accept outright

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2. Review risk reduction/management methods- Effectiveness, reliability, costs, passive or active

3. Evaluate risk/reward trade-offs- Can you “TILT” the risk/reward equation to your advantage?

4. Decide to “act/not act”…then proceed- Make your decision…or…If uncertain, do more research

5. Ongoing risk monitoring & decision making- Continuously learn, evaluate, adapt, modify & improve

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The “Risk-Wise”® Method in Action – Auto Safety

Pexels.com CCO License, Public Domain

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“Risk-Wise”® Risk ManagementCombines Holistic, Quantitative & Qualitative Methods

Includes time-tested “Qualitative” methods

•Deal with frightening “negative” surprises, uncertainty, crisis events

•Applies - Behavioral Finance, Psychology, History, Physiology…

•Neutralizes common, universal “Risk Misperceptions”

•Understand & apply risk physiology & biology knowledge

• Incorporates methods used by “Masters” of Risk Management

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“Risk-Wise”® Risk Management

• Overlays & complements “current” risk management methods and tools, you may already be using

• Complete with clients, early in initial conversations• Use with each client’s…insurance planning…financial plan…

and/or their investment policy statement

• Ensures clients’…insurance planning…risk management priorities …asset allocation & portfolio implementation are fully aligned

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“Risk-Wise”® Risk Management Planning

A “WIN/WIN” For Your Clients & You

1. Helps clients identify, understand, and quickly determine which risks to:

- Avoid- Accept and manage- Accept outright

2. Converts risks that materialize from possible nightmares & disasters into only inconveniences

- Even “potential” opportunities

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“Risk-Wise”® Risk Management Planning

A “WIN / WIN” For Clients & For You

3. Empowers better informed, more realistic, less emotional investors

- “Demystifies” risk and risk management

- Reduces the risk & “fear" of risk /risk management

- Creates more knowledgeable, less emotional, more realistic & confident “ready-for anything” clients

- More likely to achieve their goals

4. Gain better understanding & control over risks, rather than have risks control them

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Help Clients Create Personalized “Risk-Wise”® Risk Management Plans

• Transforms increased investor concerns about volatility, uncertainty & risk into powerful businessbuilding forces

• Makes your business “Anti-fragile

• Attract more clients, assets, referrals & business more easily…in a new, highly valued way that will grow over time

• Provides you a powerful HNW client “magnet”44

Providing “Risk-Wise”® Risk Management Planning

You & your clients better manage “Risk" at all levels

Portfolio/Product level:Risk management priorities are consistently aligned at each level

Client level:Addresses “Internal & External” risks of all types, including common misperceptions & problematic decision-making errors

Advisor level: Creating a written risk management plan helps minimize client/ advisor miscommunications & emotional decision-making errors

Creates more knowledgeable, less emotional, more realistic,confident, Ready-for-Anything, “Risk-Wise”® Investors

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The Business Building “Opportunity of Our Lifetime”

An outstanding way to:

Help clients… Gain greater control over the risks they face

&

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Help yourself… Transform accelerating change &

uncertainty…into powerful business building forces…that increase business…draw clients to you…

and make your job easier

The Compelling Case for Meeting This Gigantic & Growing “Un-met” Need

The Need & Opportunity Is HUGE & CLEAR

Demand is enormous & growing

Accelerating change will continue to drive demand

There’s Little to No Competition

“Risk-Wise”® Resources & Tools Makes It Easy

It’s simply the right thing to do

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The BIG Question?

Will this “Opportunity” work for your clients & for you?

We already KNOW… The real-world “Risk-Wise”® management method is already

working very well in a wide variety of settings…

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Considering it’s used by the airlines…military…autos…

Shouldn’t it work just as well or even better, with your own clients & your own business?

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Just Consider

The pace of world-wide change is accelerating dramatically

Generating increasing…instability…volatility…uncertainty…anxiety…elevated fears…and greater concerns about the

risks of our increasingly less certain world

While things that “aren’t supposed to happen”are happening more & more frequently

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The Current State of Risk Management Insurance outstanding tool…Yet many risks can’t be insured

Other risk management methods passive…situational…overly technical or reactive…clients don’t

understand or don’t work well when their needed the most

Now, more than ever… We need a more effective…practical…user friendly way to better

understand & manage the evolving risks we facerather than have those risks control us

Ask yourself …Which of your business building options offers better business building “upside” potential?

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Change Generates Risks & Opportunities

“The most effective way to manage change is to create it.

Action point …Anticipate the future now emerging and be a change leader”

- Peter Drucker -

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How do you get started?


1. Become a risk planning advocate & perpetual student, teacher• Expand on what you learned today

2. Brand yourself as a financial advisor & “Chief Risk Officer”• Meet clients/prospects biggest unmet need & gain a powerful advantage

3. Offer personal risk management education & planning services• Educate clients & they’ll trust you

4. Just start talking about it…• Ask everyone…Do you think the world is getting riskier or safer?

•What are you doing to take greater control of the risks you face?

Congratulations!

“When you see the world differently you can behave and respond differently

to the stimuli around you.

When you do that, you have the potential to outperform”

Shane Frederick, Farnam Street


When do you start?

“Don’t wait; the time will never be “just right”

Start where you stand…and work with whatever tools you may have at your command, and better

tools will be found as you go along.” - George Herbert (Welch poet)


Idea: You don’t even have to call clients…let them call you.

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Which of your other options offers you better business growth potential

than this one?


The Nature of a “True” Opportunity

“Luck is when an opportunity comes along and you’re prepared for it”

- Denzel Washington -

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Totally New

BREAKTHROUGH GAME-CHANGING

“OPPORTUNITY”• “Turbo-charge” growth of your “entire business”• Attract more trust, clients, and much more business

• “Solve” a enormous & growing unmet client problem

“Grab it” & “Run with it”57

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Go beyond client expectations…

&

Your clients will think it was their “Lucky Day” when they started

working with you


Presentation Date: Tuesday, June 26, 2018 Michael.pdf · 5/15/2018 2 Instead …Review a Totally...

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