Happy Holidays from CMPS!

Risk: What is the alternative?

It has been said that life is a series of choices and decisions that we make, coupled with a little bit of chance and randomness from time to time. I have a lot of observations about chance and randomness that I'd love to share with you sometime; but today I'd like to focus on the part of life that involves the decisions and choices that lie before us. Specifically, I'd like to focus on risk.

In fact, here's a little story you might find interesting. I was on an air plane recently on my way back to Michigan from a speaking engagement in San Diego. I was sitting next to this man who worked for an automotive supplier. We struck up a nice conversation and as it turns out, he was the type of guy who was very content with simply going to work at a "9-5 job", coming home, and otherwise enjoying life. He mentioned that he used to work with his wife at the same auto supply company; but then his wife was able to get a job elsewhere.

He went on to say that although he and his wife worked well together, it was a very risky situation because their entire household income was dependent on the same employer. So, he was glad when she got a job at a different company because it meant less risk for their household finances.

As I was hearing this man tell his story, I couldn't help but flashback to a conversation I recently had with my brother, who works with me in our various business ventures. My brother and I were talking about the perils and dangers of entrepreneurism and family businesses. After all, we had become multi-millionaires in our early to mid 20's (no, we didn't inherit this money or win the lottery). Then, we abruptly lost most of our money and financial wealth in the Great Financial Crisis of 2007-2009. We had traveled the world and gone on many adventures together, only to find ourselves back at square one trying to rebuild our financial success from scratch. It was quite a ride, and we were reflecting on the lessons we learned, the setbacks we had overcome, and all the thrills we had experienced along the way.

We contrasted our adventures in entrepreneurism with other people we knew who were content to live what is commonly called a "less risky", but otherwise very uneventful life. We observed how some people spend 30-50 years of their life working at a "9-5 job" that is relatively stable and pays steady wages. These people go to work, come home, go on a 1-2 week vacation once a year, and then repeat the process in relative tranquility year after year after year. We also reflected how many people in this world never even leave the city or town in which they were born. We observed how America is the greatest country in the world, primarily because every single citizen has a choice in terms of the life they want to live. Some people choose a more simple life, while others choose a more volatile life, full of adventure and peril.

There is nothing wrong per se with either choice. The point, however, is that there is no "risk-free" choice. There are risks, dangers, and consequences with any and every choice we make in life. The key is whether we are fully comfortable with the decisions we make and the consequences associated with those decisions.
You see, the word "risk" comes from the early Italian word risicare, which means "to dare". In this sense, risk is a choice rather than a fate. Risk is the actions that we dare to take. We could "dare to live a more simple life" and face the consequences of that risky choice; or we could "dare to live a more adventurous life" and face the consequences of that risky choice.

Let's go back to the story of the new friend I met on the airplane. If you dare to live a more simple life like him, there will be certain experiences in life that you will sacrifice or that will always elude you. On the other hand, if you dare to live a more adventurous lifestyle, there are other experiences in life that you will sacrifice or that will always elude you. Either way, there are risks and consequences. Either way, there are sacrifices that must be made. The key issue is whether you have the courage to stay the course with the lifestyle and decisions you have chosen for yourself. It was Robert Frost, in his poem The Road Not Taken, who wrote some of the most eloquent words ever penned in the English language:

I shall be telling this with a sigh
Somewhere ages and ages hence;
Two roads diverged in the wood, and I -
I took the one less traveled by,
And that has made all the difference.

So, whatever choices are before you, whatever risks lie ahead, choose the path that will leave you with the least regrets in life. Consider the alternatives. What would my life look like if I dare to make choice A versus if I dare to make choice B? Remember, each choice carries risks and consequences of its own.