Health workers conduct Covid-19 testing at a makeshift site in Zhongguancun in Beijing in April. AFP
Health workers conduct Covid-19 testing at a makeshift site in Zhongguancun in Beijing in April. AFP
Health workers conduct Covid-19 testing at a makeshift site in Zhongguancun in Beijing in April. AFP
Health workers conduct Covid-19 testing at a makeshift site in Zhongguancun in Beijing in April. AFP


The four steps to navigate uncertainty


Nathan Furr
Nathan Furr
  • English
  • Arabic

July 24, 2022

Why are we so often unnerved by uncertainty? If you look back at the most significant events in your life, those which you are the most proud of – the big career shift, the geographic move, that important relationship – didn’t they all come after a period of uncertainty?

And consider that almost all innovations, breakthroughs, transformations and changes come only after first stepping into the unknown. Even when you didn’t choose uncertainty, such as the unknowns brought about by the Covid-19 pandemic, weren’t there still possibilities hidden in the wings? Although we often try to avoid uncertainty, we forget that uncertainty and possibility are really two sides of the same coin. If we want new opportunities and possibilities, we first need to go through uncertainty.

We fear uncertainty because evolution has wired us to do so. This presents a challenge because, despite your best efforts to resist, uncertainty has been increasing for decades. Driven by shifts in technology that lower barriers to entry, greater global participation and connectedness, and numerous other factors, it is clear that uncertainty has become a regular part of our personal and professional lives. The World Uncertainty Index, which tracks political and economic uncertainty, has seen a steady upward trend since the index was started in the 1990s.

The challenge is that most of us were not taught to deal with uncertainty. It simply is not a skill taught in school or handed down by parents. As our world becomes ever more uncertain, the lack of skills to deal with the unknown may result in anxiety, over-reaction and rumination.

The good news is that we can learn to face uncertainty, as evidenced in literature on topics such as ambiguity tolerance, uncertainty avoidance and resilience.

Uncertainty and possibility are really two sides of the same coin

However, they provided limited guidance on the “how” of getting better. Entrepreneur Susannah Harmon Furr and I combined the limited empirical research that was available with interviews I have conducted over the past 10 years, in which I asked innovators how they learnt to face uncertainty. We discovered, as we outline in our new book The Upside of Uncertainty, that it is possible to train one’s ability to face uncertainty like a muscle, both as an individual and as a team.

The tools for facing the unknown can be best organised into four categories: reframe, prime, do and sustain. The first and most crucial step is to reframe uncertainty. Studies have shown that how you describe uncertainty affects how you think, decide and act. Since humans are inherently gain-seeking and loss-averse, if Treatment 1 for a new disease is described as 95 per cent effective versus Treatment 2 that is 5 per cent ineffective, we are more likely to choose treatment 1 even though both are statistically identical.

One reframing tool is the “infinite game approach” developed by the New York University professor and philosopher James Carse. Are you living your life with a “finite” lens where you learn and play by the rules to win, or living a more “infinite” game where you can question and bend your role, the rules, the boundaries and even purpose of the game? Also, consider reframing frontiers – be it geographical, technological, or personal ones related to intellectual, social, emotional or financial aspects of your life.

Then comes priming, which makes uncertainty less menacing by helping you develop self-knowledge and the conditions to pursue new projects or navigate unexpected uncertainty better. This starts with knowing your acceptance (or aversion) for a range of risks, such as financial, emotional, social, physical, intellectual or political. With that self-awareness, you can build your risk tolerance by taking smaller risks, even in non-related fields to increase your ability to take other risks. Another way is to simplify your life by outsourcing to focus your efforts on tackling the unknown.

A reproduction of a mural of Steve Jobs by British artist Banksy in Milan last year. AP Photo
A reproduction of a mural of Steve Jobs by British artist Banksy in Milan last year. AP Photo

Part of priming is to recognise that even the greatest innovators among us have limits to how much uncertainty they can endure. Innovators such as Steve Jobs have learnt to maintain fixed habits, routines and rituals as “uncertainty balancers” that bolster stability in some parts of their lives to counterbalance parts that are in flux. Just think of Jobs’s ever-present black turtleneck.

The next step is to take action. Our research demonstrates that most successful breakthroughs and start-ups are not made with a single giant step, but through a series of small incremental steps and changes in course along the way. We also learn from the best start-up accelerators that the ideal way to learn your way through uncertain environments is to talk to as many people from as many different backgrounds, as soon and quickly as possible.

One of the most empowering skills is to set yourself up so that you cannot fail. David Heinemeier Hansson, creator of the Ruby on Rails full-stack framework and cofounder of multiple start-ups such as Basecamp and Hey.com, uses an approach we call “values over goals”. Instead of focusing on a goal (which under uncertain conditions is just as much a guess), he argues that focusing on achieving your intrinsic values (for example, making a quality product and acting ethically in the market) ensures that you can succeed, no matter how the external world responds. Uncertainty is best resolved by taking action, but if you do so based on your values – such as learning, growth, discovery and living the life you care about – you can ensure your own success.

Another tool is to activate and unlock what’s already present instead of inventing a new solution. Maria Montessori developed an eponymous early childhood education method that activates and unlocks the natural curiosity of children with intellectual and developmental disabilities instead of reinventing the wheel.

A classroom at the Petits Bateaux Montessori primary school in Cherbourg-en-Contentin, France, last September. Reuters
A classroom at the Petits Bateaux Montessori primary school in Cherbourg-en-Contentin, France, last September. Reuters

When it comes to sustaining action in times of uncertainty, two important ingredients are emotional hygiene and reality-checking. We need to attend to our emotions – like how you would a physical wound – to prevent paralysing self-doubt or unproductive rumination. At the same time, recognise that setbacks and failure are part of the learning journey. Another ingredient we often neglect is to interact with the people, places and things that increase your chances of the leaps in insight, connection and serendipity that can change everything.

“Science is full of uncertainty,” said Ben Feringa, winner of the 2016 Nobel Prize in chemistry for his work on the molecular machines that could one day power nanobots in your blood to protect you from cancer or repair the pipes in your house from the inside. When asked how he deals with the uncertainty that attends scientific breakthroughs, he said “if you deal with uncertainty you will fail”, so you have to “get resilient at handling the frustration that comes with uncertainty”.

This ability to find an “upside beyond the ‘failure’” is one of many frustration-management frames that innovators use to sustain themselves through uncertainty’s roller-coaster of obstacles and breakthroughs.

As frightening as it seems, uncertainty can bring new opportunities. We can learn to be transilient, which is the moment when we see through to see through the uncertainty to the opportunity. Asking, in every moment, how can I turn this uncertainty to my advantage, can help us take that first step.

A version of this article first appeared in Insead Knowledge.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Secret Pigeon Service: Operation Colomba, Resistance and the Struggle to Liberate Europe
Gordon Corera, Harper Collins

AL%20BOOM
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WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Afcon 2019

SEMI-FINALS

Senegal v Tunisia, 8pm

Algeria v Nigeria, 11pm

Matches are live on BeIN Sports

Poland Statement
All people fleeing from Ukraine before the armed conflict are allowed to enter Poland. Our country shelters every person whose life is in danger - regardless of their nationality.

The dominant group of refugees in Poland are citizens of Ukraine, but among the people checked by the Border Guard are also citizens of the USA, Nigeria, India, Georgia and other countries.

All persons admitted to Poland are verified by the Border Guard. In relation to those who are in doubt, e.g. do not have documents, Border Guard officers apply appropriate checking procedures.

No person who has received refuge in Poland will be sent back to a country torn by war.

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

Scores in brief:

Day 1

New Zealand (1st innings) 153 all out (66.3 overs) - Williamson 63, Nicholls 28, Yasir 3-54, Haris 2-11, Abbas 2-13, Hasan 2-38

Pakistan (1st innings) 59-2 (23 overs)

MATCH INFO

Cricket World Cup League Two
Oman, UAE, Namibia
Al Amerat, Muscat
 
Results
Oman beat UAE by five wickets
UAE beat Namibia by eight runs
Namibia beat Oman by 52 runs
UAE beat Namibia by eight wickets
UAE v Oman - abandoned
Oman v Namibia - abandoned

SHOW COURTS ORDER OF PLAY

Wimbledon order of play on Saturday, July 8
All times UAE ( 4 GMT)

Centre Court (4pm)
Agnieszka Radwanska (9) v Timea Bacsinszky (19)
Ernests Gulbis v Novak Djokovic (2)
Mischa Zverev (27) v Roger Federer (3)

Court 1 (4pm)
Milos Raonic (6) v Albert Ramos-Vinolas (25)
Anett Kontaveit v Caroline Wozniacki (5)
Dominic Thiem (8) v Jared Donaldson

Court 2 (2.30pm)
Sorana Cirstea v Garbine Muguruza (14)
To finish: Sam Querrey (24) leads Jo-Wilfried Tsonga (12) 6-2, 3-6, 7-6, 1-6, 6-5
Angelique Kerber (1) v Shelby Rogers
Sebastian Ofner v Alexander Zverev (10)

Court 3 (2.30pm)
Grigor Dimitrov (13) v Dudi Sela
Alison Riske v Coco Vandeweghe (24)
David Ferrer v Tomas Berdych (11)

Court 12 (2.30pm)
Polona Hercog v Svetlana Kuznetsova (7)
Gael Monfils (15) v Adrian Mannarino

Court 18 (2.30pm)
Magdalena Rybarikova v Lesia Tsurenko
Petra Martic v Zarina Diyas

How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Who has been sanctioned?

Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.

Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.

Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.

Scotland v Ireland:

Scotland (15-1): Stuart Hogg; Tommy Seymour, Huw Jones, Sam Johnson, Sean Maitland; Finn Russell, Greig Laidlaw (capt); Josh Strauss, James Ritchie, Ryan Wilson; Jonny Gray, Grant Gilchrist; Simon Berghan, Stuart McInally, Allan Dell

Replacements: Fraser Brown, Jamie Bhatti, D'arcy Rae, Ben Toolis, Rob Harley, Ali Price, Pete Horne, Blair Kinghorn

Coach: Gregor Townsend (SCO)

Ireland (15-1): Rob Kearney; Keith Earls, Chris Farrell, Bundee Aki, Jacob Stockdale; Jonathan Sexton, Conor Murray; Jack Conan, Sean O'Brien, Peter O'Mahony; James Ryan, Quinn Roux; Tadhg Furlong, Rory Best (capt), Cian Healy

Replacements: Sean Cronin, Dave Kilcoyne, Andrew Porter, Ultan Dillane, Josh van der Flier, John Cooney, Joey Carbery, Jordan Larmour

Coach: Joe Schmidt (NZL)

FIXTURES

Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan

The top two teams qualify for the World Cup

Classification matches 
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.

Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place play-off

More from Armen Sarkissian
Updated: August 01, 2022, 5:03 PM