I work in the investment business, where risk-taking is an occupational necessity. There isn’t anyone successful at managing a mutual or hedge fund who avoids risk; we just need to face it carefully. Traditionally the industry encourages a solo approach to evaluating risk; at Fidelity Investments, where I worked for over two decades, each fund is assigned to one person who makes all the buying and selling decisions. When results are strong, the manager basks in the glow, prestige, and compensation attached to outperformance. When performance suffers, a situation experienced by anyone who has managed a fund for over ten years, you feel like an impostor and reach for the Pepto Bismal.
A Case for Group Risk-Taking
What happened when one investment firm abandoned individual decision-making.
July 10, 2014
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New!
HBR Learning
Decision Making Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Decision Making. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Practical ways to improve your decision-making process.