GUEST COMMENT: What to do if you're junior and you make a mistake
We have a really good grad straight off the internship. He's been on the desk just over six months and has been settling in quite well.
The other day, however, I noticed him sitting at the desk, the colour draining from his face. He was fidgeting and didn't know what to do with himself.
This went on for a good 20 minutes and I decided to ask him what was wrong...He had made an error. It wasn't a massive one, but it was enough to cause a problem. Fortunately, we spotted it early.
The fact is that everyone makes mistakes. We'd all like to believe we are perfect but they happen. As a graduate hire, the second worst thing you can do is to try to correct it yourself. The very worst thing you can do is to forget about it and move on.
An error in any investment bank can cause client risk, monetary risk and regulatory risk. Repercussions will ultimately trickle down to you. Simply correcting your mistake and moving on may not be an option. When you make a mistake or have an error, your career may depend on exactly how you handle the next few steps.
First, highlight your mistake to a senior person on your desk ASAP
Please do not wait and fester on your mistake. Tell your VP, ED, MD about your mistake immediately. You may be thinking going to your MD is extreme, but truth is he is going to know about it anyway- just find the most senior, most suitable person who is free.
Make sure your delivery is professional
Make sure when you present your error you do it in a clear, precise, calm but serious way wish a suitable plan to correct it. Have all the facts to hand.
"James I've got an issue. For ABC client, I did X when I should have done Y. Approx 2,000 shares are involved, but the PnL would be $10k if I were to implement solution Z."
Don't Pass the buck. Be accountable:
Pointing fingers won't help anyone if you make a mistake. If you genuinely believe a client may have played some part then it is important to indicate that and go listen to your tapes, but remember in general it is important to be accountable.
Apologize, but don't beat yourself up:
There's a big difference between admitting your mistake and beating yourself up about it. Take responsibility but don't berate yourself for making it, especially in public. Certainly ladies, DO NOT CRY!
After the storm:
Walk back through all the actions that led to the error. Work out exactly where you went wrong and ask yourself what could have been done differently. Accept the consequences. Depending on the severity of your mistake, there could be serious repercussions. Schedule a meeting with your boss and talk through the situation. Take responsibility for any fault and commit to learning from your mistake.
Move on....
The worst thing you can do is let it effect the way you continue your day to day negatively. You simply need to learn from it and never make the error again.
