The Risk Manager's Bookshelf V.2
Roughly two years ago, I asked the subscribers (thanks again!) to my newsletter two quick questions:
Do you read? If so, why?
If you asked the same questions of the Greek philosophers known as the Stoics, they valued reading because they believed it to be one of the best ways to learn and improve oneself. The Stoics argued that reading helps us develop our reasoning skills and our ability to think critically. It also helps us to gain knowledge and wisdom that we can use to live a better life. They believed that reading was an important part of their philosophy because it helped them develop their understanding of the world and their place in it.
In their book Lives of the Stoics: The Art of Living from Zeno to Marcus Aurelius, Ryan Holiday and Stephen Hanselman write that it "was Seneca, a Stoic philosopher of the Roman era, far removed from the academy, who would say quite bluntly that there was no other purpose to reading and study if not to live a happy life."
Do You Want to be Happy?
So, let's say you want to live a happy life by being a world-class manager of risk. If reading is the path to learn and improve your game, where do you start? If you are asking for my opinion, I have some books to suggest helping you see the forest from the trees.
If we've learned anything from recent years, risks continue to evolve and multiply (e.g., AI disruption, cyber warfare, climate disasters, supply chain fragility, etc.) and just placing an insurance policy each year isn't going to cut it anymore.
You need to think "big picture". You need to understand how one thing leads to another (thank you, The Fixx, for one of the best songs of the 80's!). So, to help you along this path here are some additional books that I have read since the original version of this newsletter that you should add to your bookshelf:
To the Book Depository!
Risk Management
An Economist Walks into a Brothel: And Other Unexpected Places to Understand Risk - Written by Allison Schrager, this book takes a fascinating approach to understanding risk by examining it in unconventional settings. From legal brothels in Nevada to poker tournaments, Schrager demonstrates how risk assessment principles apply across vastly different domains. It's an engaging read that makes complex risk concepts accessible and memorable.
I had the good fortune to have Ms. Schrager on a recent edition of my LinkedIn Live show “Risk On / Risk Off". You can find that interview here.
On the Edge: The Art of Risking Everything - Nate Silver's latest work explores the psychology and methodology of high-stakes decision-making. Drawing from his background in statistics and prediction, Silver examines how successful risk-takers from poker players to venture capitalists navigate uncertainty. This book offers valuable insights into when to take calculated risks and when to play it safe.
Economics How the World Ran Out of Everything: Inside the Global Supply Chain - Peter S. Goodman's timely examination of supply chain vulnerabilities couldn't be more relevant. After experiencing pandemic-induced shortages and geopolitical disruptions, this book provides essential insights into how global commerce actually works and where the weak points lie. Essential reading for understanding modern economic risk.
If you would like to watch my recent interview of Peter Goodman on my “Risk On / Risk Off” show, you can find that conversation here.
Geopolitical
New Cold Wars: China's Rise, Russia's Invasion, and America's Struggle to Defend the West - David E. Sanger's masterful analysis of our current geopolitical moment reads like tomorrow's history book. As tensions escalate globally, understanding these power dynamics is crucial for risk managers who need to anticipate how international conflicts might impact business operations and global markets.
Age of Danger: Keeping America Safe in an Era of New Superpowers, New Weapons, and New Threats - Written by Andrew Hoehn and Thom Shanker, this book examines the evolving landscape of global threats. From cyber-attacks to space warfare, the authors provide a comprehensive look at the security challenges that will define the coming decades. It's a sobering but necessary read for understanding the geopolitical risks we face.
I’ve had the good fortune to have Thom Shanker on “Risk On / Risk Off” twice. First, I did a one-on-one interview which you can find here. Then, he was on an All-Star panel early this year which you can find here.
Technology & Artificial Intelligence
Burn Book: A Tech Love Story - Kara Swisher's insider account of Silicon Valley's transformation offers invaluable insights into how tech giants operate and the risks they pose. As someone who has covered tech for decades, Swisher provides a brutally honest assessment of the industry's impact on society and business. Her perspective is essential for understanding technology-related risks.
The Coming Wave: AI, Power, and Our Future - Mustafa Suleyman, co-founder of DeepMind, provides an authoritative look at artificial intelligence's transformative potential and inherent dangers. As AI reshapes entire industries, this book is essential reading for risk managers who need to understand both the opportunities and threats that artificial intelligence presents.
Investing & Financial Planning
How Not to Invest: The ideas, numbers, and behavior that destroy wealth and how to avoid them - Barry Ritholtz's contrarian approach focuses on the common mistakes that lead to financial ruin. By understanding what not to do, investors can better protect both personal and organizational wealth. Ritholtz's practical wisdom is invaluable in today's volatile markets.
You Weren't Supposed To See That: Secrets Every Investor Should Know - Joshua Brown pulls back the curtain on the financial services industry, revealing the hidden dynamics that affect investment outcomes. This insider's perspective helps individuals understand the systemic issues that can impact portfolio performance and organizational financial planning.
The Algebra of Wealth: A Simple Formula for Financial Security - Scott Galloway distills complex financial concepts into actionable strategies. As economic uncertainty continues to challenge traditional approaches to wealth building, Galloway's straightforward framework provides a valuable foundation for both personal and institutional financial risk management.
Modern Warfare
Tiger Chair: A Short Story - Max Brooks demonstrates his mastery of speculative military fiction in this gripping tale. While brief, it packs a powerful punch in examining how future conflicts might unfold. Brooks has a talent for making military scenarios feel both plausible and terrifying.
Nuclear War: A Scenario - Annie Jacobson's sobering examination of nuclear warfare scenarios is both terrifying and essential. In an era of renewed nuclear tensions, understanding the mechanics and consequences of nuclear conflict is crucial for comprehensive risk assessment. This book will keep you awake at night, but you need to read it.
Construction & Commercial Real Estate Development
Billionaires' Row: Tycoons, High Rollers, and the Epic Race to Build the World's Most Exclusive Skyscrapers - Katherine Clarke's fascinating look at ultra-luxury real estate development provides insights into one of the world's most capital-intensive industries. Understanding how these massive projects get financed and executed offers valuable lessons in construction risk management and real estate market dynamics.
That's All for Now
There are more I could add here, but I think this updated list makes for a solid foundation on your continued path to risk management excellence.
So, if you have some vacation time in your near future as you escape whatever seasonal challenges await (Beach? Mountains? Personally, I'm off to Northern Michigan in about six weeks – can’t wait!), then order one of the above books, grab a great seat with a wonderful view, order a cold drink, and continue your path to enlightenment.
The world keeps changing, the risks keep evolving, but the value of learning never diminishes.
Happy trails!
Et al...
Review: Superman
So, if you've been a regular subscriber to this newsletter, then you know I'm a big movie fan. Pretty much every weekend, you can find me at my local Alamo Drafthouse checking out the latest release. This past weekend, I went to the movies to check out the latest film from DC Studios called Superman - and yes, I might have been wearing my Wayne Financial soccer jersey (don't judge me).
Superman, directed by James Gunn, marks a bold new chapter for DC Studios and a refreshing departure from the darker, more brooding superhero films we've grown accustomed to. Drawing from his successful work with Guardians of the Galaxy and The Suicide Squad, Gunn brings his signature blend of heart, humor, and humanity to the Man of Steel. Rather than rehashing familiar origin stories or getting bogged down in gritty realism, the film embraces the inherent optimism and wonder that makes Superman such an enduring character. Gunn's approach feels both modern and timeless, capturing the essence of what makes Superman inspiring while updating it for contemporary audiences.
And the Verdict is?
I found this to be a phenomenal film.
Like the best superhero movies, Superman succeeds because it remembers that beneath all the spectacle and special effects, these stories are fundamentally about hope and human connection. Gunn's light-hearted approach doesn't diminish the stakes or emotional weight - instead, it allows the character's inherent goodness to shine through without feeling naive or outdated. The film manages to be genuinely funny without undercutting its sincere moments, a balancing act that Gunn has mastered over the years. This Superman feels like someone you'd actually want to save the world, and more importantly, someone who genuinely wants to save it.
This is a film that reminds you why superhero movies became cultural phenomena in the first place. After years of increasingly dark and complex takes on these characters, Gunn has breathed new life into DC Studios by remembering that sometimes the most radical thing you can do is simply believe in heroes again. Trust me on this - this Superman soars.
If you enjoy what you've read here and you think I might have a clue what I'm talking about, then please reach out to me if you would like me to present to your firm or organization. I have experience talking to professional organizations, trade conferences, as well as universities. I've also appeared in newspaper articles and podcasts. Also, I'm available for birthdays and bar mitzvahs.