Experts: Mitigating Uncertainty by Identifying Fears
A Series on Managing Uncertainty and Fear (Part II)
Clients may feel isolated or overwhelmed by financial decisions. Create an environment where clients feel safe asking questions and expressing concerns. Make sure to include attorneys, financial planners, etc. to provide comprehensive support. The author, in this second part of the series, shares his strategies to address uncertainty and fear.
By combining technical rigor, clear communication, and collaboration, financial experts can mitigate the fear and uncertainty that often accompany financial decisions. This balanced approach helps clients feel informed, empowered, and supported throughout the process.
As a financial expert, you play a critical role in reducing uncertainty and fear by guiding clients through complex, high-stakes situations. To mitigate these emotions, you need to employ a combination of technical expertise, emotional intelligence, and clear communication. The following are specific strategies to address both uncertainty and fear.
- Provide Clarity Through Information
Clients fear the unknown and the potential for unexpected outcomes. Financial experts need to remember their audience is not as well-versed in financial jargon and technical language. Make sure to explain complex concepts clearly and potentially use visual aids to assist. Also, due to a variety of assumptions it is important to outline scenarios and options that display the likelihood of a variety of scenarios. Knowledge reduces uncertainty by helping clients understand risks and opportunities.
- Establish a Structured Process
Lack of structure creates anxiety, especially in complicated situations like business valuations or divorce settlements. Keep clients aware of your process and deliverables along with expected timelines. If changes occur, and they likely will, keep constant communication with clients by breaking down milestones. A predictable structure gives clients a sense of control, reducing fear and ambiguity.
- Foster Trust with Transparency
Clients worry that financial experts may not act in their best interest. Share your underlying assumptions and discuss potential constraints. Emphasize your objectivity and any steps you take to avoid conflicts of interest. Explain how conclusions were reached, reinforcing that they are based on facts and not external influences. Transparency builds trust, reassuring clients that they are receiving unbiased and well-informed advice.
- Help Clients Focus on Controllable Elements
Fear often arises from focusing on factors beyond one’s control (e.g., market conditions or legal outcomes).
- Identify Actionable Steps: Shift the conversation toward decisions and actions within the client’s control.
- Create Contingency Plans: Prepare backup strategies to address worst-case scenarios, so clients feel ready no matter what happens.
- Use Stress Testing and Sensitivity Analysis: Demonstrate how your advice holds up under different circumstances, building confidence.
Focusing on controllable factors empowers clients and reduces paralysis caused by fear.
- Provide Long-Term Perspective
Clients may fixate on short-term challenges and lose sight of the bigger picture. Relate every financial recommendation to the client’s long-term objectives (e.g., retirement security or business continuity). A long-term outlook reduces the fear of immediate setbacks and helps clients stay committed to their goals.
- Create Collaborative Relationships
Clients may feel isolated or overwhelmed by financial decisions. Create an environment where clients feel safe asking questions and expressing concerns. Make sure to include attorneys, financial planners, etc. to provide comprehensive support. Collaboration builds a sense of partnership, alleviating anxiety through shared responsibility.
Article written with the assistance of ChatGPT
Joshua Shilts, CPA, ABV, CFF, CGMA, CFE, is president of Shilts CPA, PLLC. His practice is focused on assisting attorneys, individuals, and businesses with complex financial matters and disputes. He has held roles with international consulting and public accounting firms in Miami and New York City, as well as positions with large public organizations. Mr. Shilts is a frequent lecturer on a variety of forensic accounting matters. He has been involved with hundreds of forensic investigations dealing with a variety of matters involving personal and business disputes, as well as the identification and mitigation of fraudulent activities. Clients have sought Mr. Shilts’ advice and services because of his unique industry experience and knowledge. He has provided expert testimony in commercial and family matters surrounding business valuation, economic damages, fraud, and other applicable disciplines surrounding economic and accounting issues. He has been qualified as an expert and testified in State and Federal courts.
Mr. Shilts can be contacted at (844) 850-6166 ext. 101 or by e-mail to josh@shiltscpa.com.
