Once, I had a conversation regarding market risk with a client who is deeply in love with the power of descriptive words. They looked at me intensely and shared: “So risk is the result of life’s ongoing events, when viewed through the lens of a person or family and is actually simply “happenstance”? I took a deep breath, full well knowing that I should know what that word means but still had uncertainty. In front of the client, I looked it up to be certain which delighted the client given their love of wordplay. The outcome: “A blend of happen and circumstance” and “chance”, especially when it comes to something positive.
I smiled as I thought perhaps this definition gave me an excellent opening to share the power of understanding risk in relatable terms. Life certainly presents challenges and opportunities when considering the plethora of decision paths open to us. I have found, the more difficult the decisions, the richer the journey is in teaching moments. The more we have an ability to make well-informed decisions, the more understandable and embraceable that very path of chance.
Perhaps happenstance has a more positive vibration to it, but I believe explanations of risk should also be examined in that light. Risk is not always negative. In fact, I have sought to paint risk as a very positive force in life with clients. The very essence of growth involves examining and taking paths of risk.
Its high time advisors begin to hold the risk conversation in a positive, empowering light. Risk can actually be the superpower clients learn further about, become more comfortable with, and sleep with less worry about. Using the right tools embracing institutional analytical rigor with a client-centric frame in meeting their goals and needs can help to improve client conversations involving risk so they are more comfortable making decisions.
Perhaps risk and happenstance are closer than you think. Without risk, there is no growth…no life!
