Living with risk
A personal blog from Holly about living with risk at home, as well as at work.
Risk is woven into every aspect of our lives and it’s a fundamental part of human existence. We evaluate it constantly, often without realising it. Whether it’s crossing roads, moving house (or in my case, trying to) or building relationships, we are balancing potential reward against consequence.
As a financial crime regulatory risk consultant, risk is the lens through which I view much of the professional world. My role involves helping organisations identify, assess and mitigate threats that could expose them to financial crime, regulatory breaches or reputational damage. Every day, I analyse potential vulnerabilities, challenge assumptions and ask the key question, what could go wrong, and what can we do about it? Then I walk through the door at home and become a mum to a four-year-old. The transition however, is not a dramatic one. In many ways, parenting is one long, continuous risk assessment. Whether it’s deciding if a climbing frame is just adventurous enough, judging how much independence to allow, or anticipating the conquests of a suspiciously quiet child in another room, the principles are remarkably similar. The stakes may be different, but the thought process pose familiar steps - identify the risk, assess the likelihood, weigh the impact and decide on an appropriate response.
Yet our relationship with risk is a complicated one. On the one hand, it’s incredibly useful. Risk assessments can help us prepare, make informed decisions and protect what matters most. In my professional life, I help firms navigate complex regulatory environments and prevent activities that could cause significant harm. In my personal life, it helps me keep my child safe while encouraging her to learn, grow and develop resilience. It’s also a subjective and nuanced topic as people have varying appetites for risk and whilst our perspectives on what’s acceptable and how to manage it may differ, our ultimate objective is usually the same; achieving the best possible outcome while protecting what matters most.
Risk can also become a hindrance. The more experienced we become at identifying threats, the more likely we are to see them everywhere. As Consultants, it’s engrained in us to think critically and challenge assumptions. While this mindset is valuable, it can sometimes spill into everyday life, producing a fine line between being risk-aware and becoming risk-averse.
The challenge I have come to realise is that not every risk should be eliminated. Some risks are necessary for growth. Firms cannot innovate without ambiguity, just as children cannot develop confidence without making mistakes or testing boundaries. This is where a lot of compliance advice fails. Recommending that a risk be removed is easy, and living with the consequences can be expensive. Firms end up with controls that satisfy a rulebook while quietly frustrating the business, or with advice so hedged that nobody can act on it and neither outcome protects anyone.
The harder consideration is proportion. Understanding what the firm is actually trying to do, what it can afford to get wrong and where the real harm sits, then giving a straight answer on which risks matter, which should be accepted, and what to do about the ones in between. That takes judgement, and judgement is what we are paid for and what we do really well. Risk is information and it tells you where to be careful and where to be brave, but it should never be the reason you stop.
