I was recently speaking with a friend of mine who is still serving in the military. He mentioned some work he was doing on “securitisation” policies. A year ago I would have instinctively known that he was talking about the development of security-focused institutions, the primary role of NATO in Afghanistan at the moment, and an area to which the British Army believes it can bring significant global value at a low cost. However, when he said the word “securitisation” my first thought was to ask him what on earth the British Army was doing getting involved with the development of financial instruments…
That conversation inspired me to begin thinking about some of the other phrases and acronyms that have two very different meanings in the military and in the private sector. I came up with this list; there are no doubt some more (let me know). Concurrently and coincidentally, HBR IdeaCast published this podcast, which puts forward some good arguments as to why not all jargon is bad.
So if you’re in the Big Three then take care doing CA training, HFT, looking for a VC or some PE, working out the ROE, or using DF.
| Acronym / Phrase | Military | Private sector |
| Alpha | Typical callsign | Gap between expected returns and actual returns |
| BB | Back brief | Bulge bracket |
| BD | Bulldog | Business Development |
| Beta | Typical callsign | Expected returns according to the CAPM |
| Big Three | Paras, Marines, RAF Regt | McKinsey, Bain, BCG |
| CA | Combined Arms | Chartered Accountant / Current Account |
| CDS | Chief of the Defence Staff | Credit Default Swap |
| CF | Coalition Forces | Cash Flow |
| COB | Coalition Operating Base | Close of Business |
| CP | Close protection | Consumer Products |
| CTC | Commando Training Centre | Cost-To-Company |
| DF | Direct Fire | Discount Factor |
| DSO | Distinguished Service Order | Day Sales Outstanding |
| EOD | Explosives Ordnance Demolition | End of day |
| FOB | Forward Operating Base | Freight on board |
| GS | General Service | Goldman Sachs |
| HF | High-frequency (radio) | Hedge Fund |
| HFT | Hybrid Foundation Training | High Frequency Trading |
| IOT | In Order To | Internet of Things |
| IR | Infra Red | Investor Relations |
| MC | Military Cross | Marginal Cost |
| OC | Officer Commanding | Opportunity Cost |
| OTC | Officer Training Corps | Over-The-Counter |
| PE | Plastic Explosive | Private Equity OR Price to Earnings OR Price Elasticity |
| PO | Potential Officer | Purchase Order |
| PPE | Personal Protective Equipment | Property, Plant & Equipment |
| RC | Remote-Controlled (IED) | Retail Company |
| RE | Royal Engineers | Retained Equity OR Real Estate |
| ROE | Rules of Engagement | Return on Equity |
| SF | Special Forces | Securitisation funding |
| VC | Victoria Cross | Venture Capital |
If you’re new to the private sector and the interplay of the various elements – particularly in finance – and getting concerned with all these acronyms, this graphic helps (from Wall Streep Prep).
