Enterprising Investor: Understanding Risk Management: From Surfing to Retirement

Understanding Risk Management: From Surfing to Retirement

Apr 7, 2021

Perfect risk estimates do not exist, so how do we balance risk and reward? Risk scholar Allison Schrager, author of the CFA Institute Research Foundation brief “Learning About Risk Management: Insights from Unconventional Risk-Takers,” provides insights on the nature of risk and uncertainty and potential reward and how to manage the trade-off.

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►Transcript: https://cfainst.is/2P87gNN

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Topics discussed:

2:25 Brothel, pimp, and risk management?

5:30 More noes than yeses

7:42 The art of storytelling

9:41 Lessons learned from big wave surfing

13:16 Allison’s book, An Economist Walks into a Brothel: And Other Unexpected Places to Understand Risk

14:40 What is risk? And what is prudent or good risk management?

15:50 Retirement: What does it look like in the US right now? What worries you? And what gives you hope?

17:45 Should the idea of retirement be reimagined? [HBR link]

19:41 Why shouldn’t Americans own stocks?

22:10 What’s next on Allison’s to-do-list?

23:15 Allison’s advice on encouraging people to take on more sensible risk

24:05 Wrap-up questions

o One long-term change that you hope to see as a result of the pandemic

o What one item would you bring on a long space flight?

o Flight vs. invisibility?

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