Friction
From ACT Wiki
1. Transaction processing.
In transaction processing, friction is any delay or expense relating to a transaction.
The associated costs are known as 'friction costs'.
Friction costs include time and distraction, as well as direct transaction charges.
2.
Any delay, inefficiency, or unnecessary expense in any process.
3. Behavioural skills.
Disagreement and potential unfriendliness resulting from different opinions or perspectives.
Characteristic behaviours of the Belbin teamworker role include listening and averting friction.
- Natural biases and friction in credit rating presentations
- "Internal consent about what a realistic rating outcome may look like is important for achieving alignment among senior management team members as they engage with the rating analysts.
- Natural biases exist with different parties and this can lead to friction during the preparation process. CEOs tend to focus on value creation through (debt-funded) growth, while CFOs prefer a conservative approach to deploying the balance sheet for growth initiatives.
- It is imperative to find alignment about the pace and magnitude of strategic developments, as well as the funding approach, before presenting the issuer credit story to the rating analysts."
- Credit ratings: helping supply to meet demand. The Treasurer's Handbook.
