Risk Archives | The Glasshammer

A new report by KPMG for 2019 called “Risk, Resilience, Reward- Mastering the 3 Rs: The Key to Women’s Success in the Workplace” suggests that women are still cautious when it comes to risk taking in their careers with 69% of report respondents saying they are are open to taking small risks to further their career, but a lower number (43%) revealing that they are open to taking bigger risks that may be associated with career advancement.

Just 8 percent of respondents say risk taking has contributed most to their professional success, crediting task-oriented factors over leadership traits. Instead, women attributed success to good habits such as working hard (73 percent), being detail oriented (45 percent), and organized (45 percent) to their success. Other highlights from the report suggest that women are willing to take risks to ask for new assignments and projects (69%) but less keen to ask for more salary if they deem it to be risky or moving locations for a job (both 35% respectively).

Risk studies that are available on the topic and that we have written about over the years are inconclusive since there are many factors to risk taking, including personality, environment and what is perceived as risky by the taker or even by the system.

However, KPMG’s research is mostly consistent with trends that show women are not as confident as men when it comes to risk taking, including how women think about risk. Research also shows that in some cases, women are more concerned about risk and the impact on a group than men and feel more accountable for the implications of the riskier decision. There are so many factors that correlate and cause women to not want to take risks as well as societal and organizational eroders of even the most confident woman over time, not least the double bind of being “Damned if you do, Doomed if you don’t”. So, knowing all this and still being undaunted, we caught up with Michele Meyer-Shipp, KPMG’s Chief Diversity Officer to discuss this report’s trends and actions for women and men to take in light of the findings.

Nicki (NG): What parts of the report resonated with you personally or otherwise?

Michele (MMS): This report really spoke to me, as throughout my own career I’ve definitely been hesitant at times to take risks. Like the respondents in the report, I thought ‘if I just work hard, everything will happen for me’. It was all about working hard. That’s what I was taught growing up and I truly believed that was all there was to it. It was never ‘go forth and ask for what you want’ – I had to figure that out along the way.

NG: What advice do you have for women regarding risk taking?

MMS: We have to take ownership of our careers, we have to speak up and ask for what we want, and navigate the politics along the way. Don’t assume someone is going to hand you the next job just because you’re working hard; it just doesn’t work that way. Engage your board of mentors, and identify those who are sponsoring you. Your mentors are the people you choose to give you career advice. Your sponsors are the leaders who are advocating for your career. Both are incredibly important.

NG: What role does the organization have in helping women who do take risks?

MMS: Organizations have a huge role to play in helping women who take risks. First and foremost, they must make it clear that risk taking is a welcomed and valued leadership trait. This message has to come not only from the very top of the organization, but also from a woman’s immediate supervisor. From there, when a woman does take that risk, the company must support her in those efforts. For example, a risky new role requires the woman assuming that role to have the support she needs to get the job done. Does she have the right team, the right budgetary support, and so on. These are all factors an organization must consider.

NG: Since most leaders are still men, what role do men have in this?

MMS: Men need to “lean in” and support women on their teams. Some men have hit the snooze button in the wake of the #MeToo movement out of fear and uncertainty, but this is not a moment to sit on the sidelines. It is a great time to decide who we are and what we stand for and to be intentional about it. Whether you are a man or a woman, my advice is to proactively support each other, mentor each other, partner on teams together and advocate for one another. We must ‘assume good intent, until you see otherwise’ as it is a two-way street.

Men must also beware of their unconscious biases as related to women. Let’s face it, if you have a brain, you have a bias. It’s human nature. That said, men need to interrupt stereotypical assumptions they may make about women as that can inevitably lead them to make a bad decision.

NG: What surprised you about the findings in the report?

MMS: I found it really interesting that money remains the top motivator for risk taking. It runs counter to a lot of research and I kind of like that it debunks the notion we are so different. If 40% of women who responded said that they would take risks when there is an opportunity to make more money, then we know that along with the finding that 70% of women tend to be very resilient even in the face of failure, then I have great reason to remain optimistic that we will continue to see women taking smart risks that bring long term rewards.

Women need to focus on building professional relationships within their companies as well as their industries as a whole, which can be a huge benefit considering how narrow most industries tend to be — and how small the world is, says Ayesha K. Farooqi of Macquarie Capital.

“It’s vital to build relationships with your colleagues, both junior and senior, and one way to accomplish that, in addition to social interaction, is by taking on as much responsibility as you can handle, being proactive but also reliable so you can earn stretch assignments that will help you grow,” she says.

Proactively Finding Opportunities to Grow Her Skills and Reputation

Farooqi began her career as a tax attorney specializing in cross-border transactions, but realized there was a lack of such work during the economic downturn caused by the dot.com bubble burst. She proactively visited her managing partner’s office and said that she wasn’t in an area where she was learning and growing as much as she would like and asked to switch to, at the time, the more dynamic bankruptcy practice. He complied, as the bankruptcy group was expanding, and this request fit a need where the firm was looking to hire an additional bankruptcy associate. She began splitting her time between her tax practice and doing litigation and transactional bankruptcy work, which quickly evolved into financing companies that were entering or exiting bankruptcy, that further segued into leveraged finance.

She worked for a number of leading law firms over several years until an opportunity to move into a new role being created at Macquarie Capital presented itself. Farooqi saw the new role that would sit within the debt capital markets business requiring a mix of legal, business and risk management acumen as a challenging yet exciting opportunity that would add further depth and breadth to her diverse background. The self-described adventurous Farooqi said “Sign me up.” It proved to be a smart move, as she just marked her fifth anniversary there and has organized a team within the debt capital markets business that is thriving and has become an integral part of the business.

“The fact that I am open to opportunities and have been able to fluidly transition from one practice area to another, allowing me to build on my expertise and gain valuable experience, has been a boon to my career,” she notes. However, she says that while she has been proactive in acquiring diverse work, she sees now that things that she felt stress over as she went along, particularly those outside her control, tended to work out over time. “I could have worked more strategically,” she says, adding that along the way she has learned that hard work alone is not enough to help you climb the corporate ladder — equal consideration has to be given to building lasting relationships.

Right now she is enjoying her work on a number of exciting transactions as she helps the business operate in a nimble fashion. “I can work at multiple levels of a transaction focusing on both the commercial and legal perspective of a deal,” she says.

“Over time, I’ve learned that the transactions that were the most complex were the ones where I learned the most and still draw upon,” she adds.

A Company That Embraces Diversity

Farooqi is proud to work for a company that maintains a focus on gender equity; in fact, while investment banking as a whole is having a relatively challenging time attracting women, the new class of analysts who just finished their summer internships in the debt capital markets group at Macquarie Capital were all women, but one. In addition, roughly one-third of the managing directors in the debt capital markets group are women, and Macquarie Group recently promoted Shemara Wikramanayake as its next CEO, hardly the typical investment banking CEO mold. Wikramanayake was recently named the fifth-most powerful woman in business outside the U.S. by Fortune International.

The company encourages gender success at multiple levels; for example, the Lean In circles that were established four years ago have evolved into a formal Women at Macquarie group. The firm-wide initiative has a budget aimed at promoting gender quality and attracting and retaining women. “I am proud to have seen the Women at Macquarie group grow so rapidly,” she says.

The company also offers a variety of work/life tools to employees, such as guidance for healthy balance regarding flexibility in the workplace, and even financial and other advisory information, such as a recent session to help employees learn the ins and outs of getting a child into a private school or some of the most competitive public schools in New York City.

She says she’s seen a positive trend of more women entering the legal and investment banking fields, which means there needs to be hyper vigilance on retaining them. “We have to build the pipeline, and mentorship is a key way to do that. Women need to build relationships from both sides: Those in the junior ranks should concentrate on doing good work and building relationships with senior folks so others on the team can vouch for you when needed; senior women should seek out promising junior women on the team and help groom them to become leaders in their chosen field.”

In her free time, Farooqi loves to travel, the more adventurous the better, including hiking the Inca Trail and Patagonia, trekking in Chile and scaling Kilimanjaro in just five days. Always looking for a new challenge, she expands her hobbies regularly, and recently has taken up golf and bird hunting.

Tag Archive for: Risk

An Updated Look at Risk Taking for Professional Women