No risk equals no return
A few years ago, I attended the Ontario Prayer Breakfast at which Prem Watsa, CEO of Fairfax Financial Holdings Limited, was the keynote speaker. The corporate values of Fairfax reflect Watsa’s personal values, which are informed by his faith in Jesus Christ. One of them is “We are entrepreneurial. We encourage calculated risk taking. It is all right to fail but we should learn from our mistakes.”
I relate strongly to this value as I spent over forty years leading organizations engaged in financial risk taking. From corporate lending to non-recourse project financing to venture capital investing and to investing in publicly traded equities, my teams assessed risk and from time to time tasted its consequences! Besides taking investment risk through the funds we managed, the entrepreneurial investment firm I led for much of my career routinely took risk creating and marketing new financial products.
In reality, we must take risk to earn a return. However, as per Fairfax’s value, risk taking should be calculated. In the investment business, the task at hand is to identify and assess all the quantitative and qualitative risks associated with the opportunity.
In order to move ahead and experience a fulfilling life, we must take risk
This example from the investment industry also applies to life generally. In order to move ahead and experience a fulfilling life, we must take risk. There is no avoiding it. Playing life safe is very dangerous. Every day, we make choices regarding education, career, marriage, friendships and activities. We intuitively understand that these choices involve risk.
There is, however, a risk that many do not acknowledge or, if they do, do not investigate. This risk is indifference toward God. For many, this risk falls under the category “we don’t know what we don’t know”! On the other hand, anyone including marketplace leaders can choose to acknowledge and evaluate this risk.
As Christians, we believe that this assessment necessarily involves considering God’s unconditional offer of forgiveness and the full life that comes from being in relationship with Him through Jesus Christ. Accepting His offer requires our agreeing with the biblical assertion that we have erred by de facto declaring independence from God. To paraphrase Frank Sinatra’s well-known song, “we have done it our way!”
It takes humility to make Jesus our leader. This is particularly challenging for those of us in senior business positions. However, taking this risk was the best decision of my life. For me, the return has been priceless – an abundant life full of meaning, joy, peace and adventure.
Intrigued? Please connect with me to learn more.
Photo by Loic Leray on Unsplash
