Risk: A Fundamental Force That Shapes Our World

What do bridge engineers and portfolio managers have in common? A whole lot more than you might think. In this fascinating philosophical exploration, structural engineer Trevor Gardner joins us to uncover the striking parallels between engineering risks and financial risks.

Trevor reveals how engineers approach earthquake design with remarkably limited data—just 90 years of records for structures meant to last 75+ years. This creates an intriguing parallel to financial markets, where past performance offers limited insight into future events. We explore how both disciplines face the challenge of the "unknown unknowns" and share similar approaches to managing tail risks—those rare but catastrophic events that can change everything.

The conversation examines how the Tacoma Narrows Bridge collapse mirrors financial system failures, how optimization actually introduces new vulnerabilities, and why both professionals sometimes wish for "just one little earthquake" to prove the value of their cautious approaches. We discover that in both fields, risk isn't something you eliminate—it's something you trade, transform, or accept.

Guest: Trevor Gardner
Bio:  I grew up in Enterprise Utah. After graduation I got my bachelors from Dixie State and a Bachelors and Masters from Utah State University in Structural Engineering. I have been working as a structural engineer designing bridges and structures in Utah for the last 8 years.
LinkedIn: https://www.linkedin.com/in/trevor-gardner-pe-a48b70132


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[00:00:00] Intro.
[00:08:40] The History of Risk Management.
[00:14:30] An Engineer's Approach to Earthquakes.
[00:24:10] Risk as a Constant Force.
[00:34:07] Tail Risks and Catastrophic Events.
[00:50:50] The Illusion of Optimization.
[01:05:15] Risk Education and False Confidence.
[01:13:35] Behavioral Risk and Final Thoughts.

DISCLAIMER:
Information presented on this program is believed to be factual and up-to-date, but we do not guarantee its accuracy, and it should not be regarded as a complete analysis of the subjects discussed. Discussions and answers to questions do not involve the rendering of personalized investment advice, but are limited to the dissemination of general information. A professional advisor should be consulted before implementing any of the options presented. Encompass More Asset Management LLC is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC) and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements.