I’ve been in banking for a while now, and if there’s one thing I’ve learned, it’s that we’re a cautious bunch. We’re trained to be. As risk managers, we’re a weird mix of optimistic relationship-builders and skeptical credit analysts. We’re the people who drive past a new development and immediately start wondering about its occupancy rate and debt service coverage (DSC). It’s just how we’re wired.
But what if I told you that this natural caution, while valuable, can also hold us back? What if the biggest risk we’re facing today isn’t on a balance sheet, but in our comfort zones?
I want to dare you to do something that might scare you a little. I dare you to be comfortable in the uncomfortable. To step out and try something new. To ask the questions that no one else is asking.
Think about the way things have always been done. Do we have to follow conventional structures just because that’s the way it’s always been done?. What if you looked at your processes and found a creative way to make a change that helps your customers? What would that look like as a lender?
This extends beyond lending, too. We’ve seen in recent years how our industry has been forced into uncomfortable situations. During the pandemic, the global financial industry was in a near-panic, but community banks rolled up their sleeves and figured out how to make it work. We injected calmness and strength into our communities, even when we were scared ourselves. We kept farms running, businesses open, and homes being built. We rose to the challenge and handled the uncertainty, positioning our banks for growth and, all the while, growing our communities. The lessons from 2020 still apply today.
Remember, uncertainty presents opportunity for those who keep their wits about them. Now is the time to get creative (without being stupid) in our business practices. It’s a moment to remember our role as risk managers, understanding that risk is simply “uncertainty quantified”.
So, I dare you. I dare you to look at your processes and find a new way to operate that benefits your customers. I dare you to get uncomfortable and have honest discussions with your team about what they need to succeed and grow, remembering that money isn’t always the best tool for engagement. I dare you to be the banker who distinguishes yourself in the community by trying a new idea.
We have a unique and powerful role in our communities. We have the ability to “raise all ships” in ways other entities can’t, including the government at times. But it takes courage to step out of the conventional and into the uncomfortable. It requires you to stop being a “critical” borderline pessimist and instead, find a new and creative idea that just might be a game changer for your bank.
So, take a deep breath, and I dare you to get uncomfortable.
Portions of this article was written with the use of Artificial Intelligence.