First, own all the risk
Return is largely outside your control. Risk is not. A detailed approach to reorienting your fiduciary thought processes.
Rich and Co.
We would propose the word, and concept, to use is “uncertainity” — not “risk.” Risk has a known probability. “Uncertainity” does not.
One of the challenges for investment services is moving away from the implicit promise/claim that we know the probability of losses, or “risk,” for assets when, in most cases, we do not.
Using “uncertainity” is also in line with neucroscience where our brains, all animal brains in fact, are “uncertanity” averse. Technically, “risk averse” is a misnomer.
Some brains are born more uncertainty averse than otheres, and that is one dimension of inherited, genetic “personality” and critical to financial advice assesments.
