The conversation highlighted how both disciplines struggle with the challenge of the “unknown unknowns.” The Tacoma Narrows Bridge collapse of the 1940s was cited as a classic example where engineers couldn’t anticipate how wind dynamics would interact with the bridge structure – a catastrophic failure stemming from factors beyond their existing knowledge base. Similarly, financial advisors must account for market crashes, economic disruptions, and black swan events that, by definition, can’t be precisely predicted.
Both professionals must also manage the behavioral aspects of risk. Trevor noted that contractors and clients often resist safety measures that seem excessive until a disaster occurs, while financial advisors face clients who may abandon carefully constructed long-term plans during market volatility. This human element adds another layer of complexity to risk management in both fields.
Perhaps most telling was the shared professional burden: both engineers and financial advisors carry the weight of knowing they cannot provide absolute certainty despite public expectations. As Trevor quoted, “Engineering is the art of dealing with materials we don’t understand and making them withstand forces we can’t analyze in a way that the public doesn’t know the extent of our ignorance.” This sentiment resonates equally in financial planning, where advisors must project confidence while knowing the inherent uncertainties of markets.
The discussion culminated in the realization that overconfidence may be the greatest risk of all. Systems that become too optimized for specific scenarios often become vulnerable to unexpected events – whether that’s a bridge designed to withstand only certain earthquake frequencies, or an investment portfolio constructed with a too narrow focus. The complexity that comes with optimization can introduce new vulnerabilities that may not be immediately apparent.
This cross-disciplinary conversation offers valuable insights for anyone making decisions under uncertainty. It reminds us that acknowledging the limits of our knowledge is not a weakness but a strength. Whether building infrastructure or planning our financial futures, understanding the nature of risk and approaching it with appropriate humility may be the most sophisticated risk management strategy of all.