Will we be able to discuss RISK quietly soon? Risk taking is central to our life. Not just finance and its traditional risk/return approach. But in everything we do we tend to ponder risks. We now know that black swans exist. And to many it is scary.
The capacity to take risk is crucial for kids to grow and for homo sapiens to innovate and progress. It is crucial for searchers. It is crucial for the proper functioning of our economies.
I vividly remember Martin Wolf telling the audience at HEC at the launch of « Can finance save the world ? »: « you can be risk adverse for 1 or 2 years not for 5 years or forever ».
When we exit the crisis, once tragedy is behind us, will be willing to take risk and try new things? Take risk and engage with others? Other people and other nations? Or will we build walls and hide ourselves? Will we save all in cash? Will we take the risk to develop sustainable but innovative business models?
Will our relationship to risk be altered decisively? Positively or negatively? Too early to say. But probably not too late to think about it. This is a key to paralysis or movement. Alongside TRUST already discussed few days ago
PS and no unfortunately I have not played risk since last summer ... #canfinancesavetheworld
