Right now, we’re being asked to make decisions on a daily basis about how much risk we are comfortable taking as we wade into work, meet the start of the academic calendar, contemplate social and/or professional gatherings, navigate transportation options and consider dining al fresco to support restaurants (or, for some of us, just get out of the kitchen). This has me thinking about the importance of auditing our risk tolerance, updating some of the settings, and cultivating more grace around suspending judgment. I’ll explain…
In a traditional, financial sense, risk tolerance is seen as a key element of balancing a portfolio. Do you love playing the market? Prefer mutual funds? Store cash under your mattress? For many of us, we strive to take a balanced approach, incorporating complementary strategies that offer a chance of good returns and some sense of security and predictability. Perhaps we can do the same as we get used to the uncertainty created by the pandemic.
I’d like to think that I’m a fairly rational and community-oriented person. As such, I follow guidelines and wear a mask, wash my hands regularly, try to keep a safe distance, and gather in outdoor spaces. But, I also love seeing my friends and family and have made the calculated decision to do so in ways that feel responsible. My approach, however, might not be yours. And that’s ok. There can be no place for shaming people who take a more conservative stance; we need to trust each other to make the right decisions for ourselves.
All of this, however, is producing a lot of stress. We’re making micro-decisions about things that heretofore were automatic (pressing an elevator button, shaking hands, entering a building). And, if we are leaders – or parents of school-aged children – we’re making macro decisions about how to open (or not), the configuration of communal spaces, and respecting the needs of diverse stakeholders. The challenge/opportunity is to find a comfortable place where we can feel both responsible yet not unduly constrained. In a great opinion piece in the New York Times, Dr. Elisabeth Rosenthal, reflecting on her experience dealing with health crises globally, notes that “Accepting risk doesn’t mean throwing caution to the wind. It means taking all precautions and deciding you can live with the very reduced risk that remains.”
None of us wants to risk lives – ours or those of others. We need to find ways to engage in the work of living by being honest about new boundaries, new (or newly restated) priorities, and by allowing for a true diversity of experiences. I can’t stress strongly enough how important it is to respect the decisions of others. Our risk profile is our own, and suspending judgment – except, of course, when you feel directly affected, by a “mask hole” for example – is essential for healthy relationships and communities.
Successful investors are attuned to their priorities, take a long-term perspective, keep close tabs on what is happening on the ground, and stay true to their vision. There is now an invitation to do the same as we consider how we move about the world, and allow others to do the same.
