The document discusses contingency planning processes for trading firms based on an interview with Eric Aldous from RBC. It finds that trading teams have analysts who determine trades but also have contingency plans in place for every trade. Critical thinking and predefined contingency plans are needed to map out a range of outcomes and courses of action for every trade. Key steps that may require contingency planning for financial investments include reviewing investments, deciding how much to invest, and when to redeem investments. Contingency planning and critical thinking should be part of every business and personal decision.

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The Planning Process
Stacey Troup
Critical Thinking & Decision Making/PHL-320
June 27, 2016
Todd Goodling

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The Planning Process
This Week 3 paper is based on an interview conducted with a former colleague, Eric
Aldous, CFA, FRM, who is now a Managing Director for RBC (Royal Bank of Canada) and
head of futures trading for the company. Over the course of this discussion I will discuss what I
discovered about contingency planning and how creativity and critical thinking relate to
contingency planning processes for trading firms. Additionally, I will discuss how I have
integrated creativity into my planning process during our time working together as well as what I
learned about creativity and its relationship to the decision making process. Finally, I will
identify key steps that might require contingency planning. For the purposes of this paper, the
subject matter will relate to financial markets trading.
Contingency Planning Discovery
The group, as many trading teams do, had a team of analysts who determine through
analytical review and statistical analysis, how the company will allocate its trades. What I
discovered is that in addition to their suggestions, there are always contingency plans in place for
every trade and every financial decision the team makes. The biggest hindrance to a trading team
is the race against the clock to execute the trades at the right time with the right finesse.

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Creativity and Critical Thinking within Contingency Plans
Deeper into the interview, I discovered that critical thinking and contingency plans go
hand in hand. According to Mr. Adous, there is an inherent need to map out a range of outcomes
and have predefined courses of action for every trade to be executed.
In addition, he identified the unknown as the hard part of contingency planning. Dealing
with the unknown requires the right people and communication to develop a course of corrective
action on the fly.
Personal Integration of Critical Thinking into My Planning Process
Critical thinking has always, and will always play a major role in my planning process.
Because of the positions I hold (Executive Assistant at the C Level) it is imperative that my
decisions include critical thinking. As an extension of the executive you support you need to be
aligned with their thought process and how they might want to receive information from you as
well as coordinated efforts of communication from their teams.
Creativity & Relationship to Decision Making Process
Mr. Aldous stated it best when he said “Don’t over think it. Develop a strategy, create the
plan, try and punch holes in it, highlight the risks, create the contingency plans, create a
decision making process for change….then execute the strategy.” (Eric Aldous, CFA,
FRM, personal communication, June 22, 2016)
Conclusion
What was gained from this conversation was that critical thinking plays a key role in all
business decisions. Key steps requiring a contingency plan for the purposes of this paper include
reviewing an investment, deciding if to invest company’s levered money, how much of an
investment to make and how long to lock your investment up for. Along the way of every
investment comes a time when a redemption ore reevaluation of the investment is needed.

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Consider the recent withdrawal of the UK from the EU and its negative impact on futures
trading. Investors were scurrying to redeem their shares for fear that the worst was about to
happen in the currencies (futures) markets. According to an article I found, the withdrawal of the
UK from the EU resulted in $1.1B in stock redemptions which is the second largest in history
(Platt, 2016). Could this have had a contingency plan? Of course it could have. While the
article does not differentiate how those investments were structured (individual or institutional),
it is almost certain that institutional investors had their redemptions in the hopper before the
announcement as part of their contingency planning and critical thinking plans with the help of
their on-staff analysts.
When you think of critical thinking and contingency planning in the business world, you
have to think of it in terms of every action having a multitude of possible reactions. Contingency
planning is key to the success of this course of business. Financial markets rely on the
contingency planning and market knowledge of their employees in order to guarantee the success
of the company and its investors.
Critical thinking and contingency planning should be a part of every decision you make,
be it business or personal. You will find that you are never looking back negatively on your
decisions when you give full consideration and thought to the decision rather than acting rashly.

5. 5
References
Platt, E. (2016, 06 17). UK $1.1BN Stock Fund Withdrawals Second Largest On Record.
Retrieved from Financial Times: http://www.ft.com/cms/s/0/9ba78882-3409-11e6-bda0-
04585c31b153.html#axzz4CWYDYhkm

6. 5
References
Platt, E. (2016, 06 17). UK $1.1BN Stock Fund Withdrawals Second Largest On Record.
Retrieved from Financial Times: http://www.ft.com/cms/s/0/9ba78882-3409-11e6-bda0-
04585c31b153.html#axzz4CWYDYhkm