System risk assessment.

All right, I have just been out to get a cubic meter of vintage Ironbark and stuff is great at burning, we are heading into the autumn or the fall is getting colder beautiful days, like right now.

It's perfect weather.

It's absolutely stunning here, but the nighttime is cold.

And I go out to my wood guy and get the wood and we're discussing my poor fire right now.

It's very difficult to start the fire in my house.

And it's okay, what's what do you think's going on? It's like, well, you know, so most likely, it is that there's a bunch of suits and stuff just sitting above the airflow.

And it's kind of blocking it as like, okay, cool.

What do you do? Well, you just take the baffle plate, which is the metal bit, and remove it and all this stuff or fall down.

So okay, cool.

Cool.

I was thinking, I said to him, I was thinking that I'd have to clean the chimney.

It's like, well, you know, it's probably a good idea to do that.

And I was like, what, you know, what, if the problem is the source, and I get rid of that, I'm good to go.

And he's like, Yeah, you know, that's great.

But when was the last time that you cleaned a chimney? And I'm like, well, probably like two, maybe three, I don't really know.

And with the difficulty of keeping track of time, my mind's particularly on these events, where it's like, I'm not really sure.

It might be two years, it might be three years, it might be four, as like, you know, what? What do you reckon? Should I clean? Did he say? Absolutely.

You definitely should I say why? Well, I find out that the chimneys can catch on fire, as like, great.

That's not good.

That doesn't sound good.

You said, yeah, it's not good.

Because the next thing that happens up the chimney catches on fire is then your roof catches on fire, and your house burns down.

And I don't know if you can see, but you can see, here's my house here.

Like it's a yeah, that is a wooden house.

It's a wooden house, and it's got a chimney in it? How might you know? Okay, so here we have an example of a very dangerous system.

Why? Well, it's got catastrophic downside risk, okay, the house burns down.

That is a very bad outcome.

That is not good.

Secondly, it is a very rare system.

Like once every two or three years, I've got to remember to clean the chimney.

Like that is something that if it is not tracked, and it doesn't go in some kind of system to say, hey, it's time to remember to clean the chimney.

You know, like, this is a super important system, because it doesn't get done, my house burns down.

And like, okay, the house burns down.

But what about if one of my kids gets killed, all my family gets killed, or I get killed like that is bad.

So this is actually a system that I'm going to get on point.

And that's just going to look like a calendar entry.

Every two years with an email reminder, we've already covered this before that just having a calendar entry.

I don't know how you are, but it's awfully easy for me just to swipe away a calendar entry and either dismiss it as unimportant or just go on.

Remember that.

And yet, if I don't remember that, then I'm at risk of my house burning down.

So I might not, I want to make that email get sent as well.

So now I've got a time system that says, Hey, Tom, it's time to clean the chimneys.

Now, the chances of me actually remembering this downside risk, hopefully, I do as it's such a catastrophic event, but maybe I don't, I definitely forgot to take a tarpaulin or a covering thing.

So you can see here on top here, this is not mine.

This is my old guy.

He's like, Dude, don't risk having an uncovered load.

I was like, why he's like, Well, the fine is per item.

I'm like, What is it like? Yeah, if you've got two gumboots that are unrestrained, that's $200.

It's $100 per item, as like, how many? How many pieces of wood are there? He's like, 150, maybe 200.

I'm like, Whoa, holy smokes.

That's a lot of finding is like yeah, so how about you take the prevention bar this because I've got to bring back the chimney cleaning anyway, is like let's just not take a chance.

And the road home was fine.

There was no police there was nothing but it was a worthwhile thing for me too, first of all, pay attention to and say, okay, when I set up this system when I get this calendar entry on point, not only is it set for to yearly but also a reminder for what to take to the wood guy.

And the downside risk of the house burns down.

Well, okay, great.

Now in two years’ time, I get that reminder.

Mike, what's this? Oh, and I read through a slide.

Oh, yeah.

Remember, if you don't clean your chimney, your house is at risk of burning down.

And it happens.

Like in our area, they say three to four houses per year, burned down where people have failed, maybe it was four years, maybe it was five, maybe it was six, maybe seven years since they cleaned that chimney.

But because they failed in that system.

They didn't have a calendar entry with an email reminder.

And the downside risk is their house burnt down.

Hopefully, no one got killed.

So my takeaway from all of this is Hey, some systems are critical.

Some things particularly like this burning of the wood, the with the chimney catching on fire, this is something I want to have on point, not all systems are going to be catastrophic like that.

Like for comparison, if my advertising system falls over, okay, you know, no one dies, but this one, this is important.

So my question for you is where in your business is a critical system that has major downside problems that is currently not being handled? And then secondly, what are you going to do about it? If you want to know what to do then head over to system I O dot Dev, pop any name pop in your email address there, grab the training around this if you'd like some help, because this stuff is important.

Alright, thanks for tuning in.

See in tomorrow's episode as we continue this journey into systems and processes in business.