Broker Check

Intensive Care Investor Checklist (ICIC)

This Investor checklist is modeled after the WHO (World Health Organization) safe surgery checklist created in 2008 by Dr. Atul Gawande, endocrine surgeon at the Brigam and Women’s hospital in Boston, staff writer for the New Yorker and associate professor at Harvard Medical school in collaboration with a group of international medical professionals.

Eight hospitals around the world participated in a 3 month experiment. A 19 item checklist including 7 items pre-anesthesia, 7 items pre-incision and 5 items before exiting the operating room were reviewed by the surgical teams. The results showed the rate of major complications from surgery fell by 36%. The need for repeat procedures due to bleeding or other complications fell by 25%. Infections fell by almost 50%. Deaths fell by 47%.

Your financial life is at risk your entire life. A checklist is fast, clear, and provokes action. This list is for the financial advisor and the client who must operate as a team.

“Inherent tension exists between brevity and effectiveness” (p.138 The Checklist Manifesto How to get things right.

Before Investing: 
Do you really know your client? 
Have you identified the money to be invested? 
Have you probed to identify your client’s fears about investing? 
Are you able to serve this client with regular contact? 
Is the client still building wealth or amortizing a capital base that cannot be replenished?

The Investment process 
Do you know the process and resources (research analysts, portfolio managers, forecasting metrics, the managers are using for security selection? 
Do you know how each manager will likely influence the client portfolio? 
Do you know the total risk of the client portfolio? 
Does the client have a clear expectation about the range of performance of the portfolio?

Annual Review 
Is the portfolio properly weighted with different asset classes? 
Should gains be reinvested or taken? 
Is tax loss selling appropriate? 
Do you know why a manager underperformed? 
Should a manager be removed? 
Has the life circumstance of your client changed?