When it comes to risk management, few can claim expertise like Dante Disparte. Currently serving as the chief strategy officer and global policy lead at Circle, the outfit behind the USDC stablecoin, he previously held a unique role akin to a “corporate Robin Hood” in the collections division of Bally Total Fitness during his college years. Originating from Puerto Rico, Disparte is multilingual, fluent in Spanish and Portuguese among other languages, effectively turning himself into a solo foreign language department.
“Rather than pursue the collection of bad debts, I provided guidance to Spanish and Portuguese speakers, and others, about how to legally extricate themselves from their contracts,” he recounts, “allowing them to safeguard their credit.”
This experience prompted him to establish Risk Cooperative, a risk advisory firm and insurance brokerage, in 2014. At that moment, he and his wife were managing on a single income, deliberating over the potential risks and advantages of turning down an enticing job offer to launch his enterprise. However, after voicing his fears about possible failure, his wife urged him to consider what he might regret more: the act of failing or the choice of never attempting. When framed in this light, the decision became clear.
Today, Disparte is dedicated to influencing the evolution of cryptocurrency, striving to make it more attainable—and less perilous—for marginalized individuals often overlooked in traditional investment frameworks. This endeavor reflects his enduring commitment to empowering vulnerable populations to gain better financial control, instead of being constrained by systems that were not designed with their needs in mind.
His insights on risk go beyond merely financial investment advice. We turned to Disparte for his perspective on evaluating risks and welcoming serendipity, especially when significant stakes are involved.
Do not confuse risk with uncertainty
Feeling apprehensive about a risk before making a significant move is completely normal. Before you embark on creating a list of pros and cons, ensure you fully comprehend the situation at hand. Disparte emphasizes the importance of not equating risk with uncertainty—they are fundamentally distinct concepts.
“There can certainly be detrimental [risks], make no mistake about that,” Disparte notes. “A common misconception in leadership is conflating risk with uncertainty… The latter can’t be quantified, while risk can always be assessed.”
“Uncertainty is typically negative,” he continues, “whereas risk is generally manageable.”
Evaluate whether your risk is prudent…
Certainly, risks can be classified as either beneficial or harmful. A beneficial risk might present a high chance of success and lead to transformative life changes. Conversely, a harmful risk may be inadequately assessed or have a substantial likelihood of negative consequences that could set you back more than you can bear.
Consider this scenario: You wish to leave a job that you dislike in order to devote more time to securing a new position. If you have savings, networks, and a clear vision of your goals, resigning could grant you the mental bandwidth and initiative to transition more quickly into a better opportunity. However, if you lack a defined plan or would need to incur debt to maintain your current lifestyle without a new role immediately in sight, it might not be the optimal moment to leap.
… Yet don’t overanalyze your risk
Nonetheless, there are instances where excessive planning can derail an otherwise sound strategy. For instance, suppose you aim to develop an application aiding individuals in finding travel companions. You become excessively focused on user experience and launching the app, only to receive an inquiry from a journalist covering the current trends in social connectivity. You hesitate: The app isn’t ready for public consumption, and you’ve never faced an interview before, leaving you uncertain about speaking with this reporter. What if you misstep? What if they misrepresent key facts?
“Every article became akin to a mini lottery ticket for visibility,” Disparte suggests. Therefore, it’s wise to put yourself forward. If you’re taking a significant risk, don’t neglect the smaller opportunities that come your way as well.
“Super-intelligent, calculated risk-taking also opens the door for serendipity,” Disparte points out. “If you’re striving to enhance your visibility but fear stepping onto a stage or sharing your thoughts online, you’re already at a disadvantage.”
Clarify the distinction between a minor setback and genuine hardship
It goes without saying that there’s no reward without some level of risk, a lesson Disparte underscores. However, take a moment to consider your worst-case scenario—whatever that daunting prospect may be that makes you hesitate before jumping in. Is it truly as dire as it seems? Will the most extreme outcome derail you, or merely halt your immediate progress?
One of the first steps in assessing risk is to ascertain “how much discomfort can be classified as genuine hardship,” Disparte articulates. “Are you prepared to endure pain for the sake of potential benefits?”
With respect to financial investments—particularly within the realm of cryptocurrency—his stance is clear: Only invest in what you fully comprehend.
“The cryptocurrency arena has largely been characterized by rampant speculation,” Disparte explains. “For every Bitcoin billionaire, there are countless individuals who have suffered significant losses due to fraud and myriad other risks.”
If you’re intrigued by cryptocurrencies, he advises starting with a digital asset wallet from a regulated provider and curating a diversified portfolio that includes established assets like Bitcoin and Ethereum, which are the leading cryptocurrencies likely to endure. While memecoins, like Dogecoin, may yield windfall gains for fortunate investors, they are fraught with risk. In contrast, stablecoins such as Circle’s USDC are tethered to a fixed dollar value, remaining stable in price.
Engage with stakeholders frequently from the outset
Initial investment can be crucial in bringing your idea to fruition, but Disparte highlights that it’s not solely about financial resources. Although attracting investors might dilute your profit margin, gaining confirmed interest or backing can prove invaluable even beyond monetary support.
“Nothing worthwhile should be undertaken in isolation,” Disparte asserts. “You know the saying, ‘Misery loves company’? Well, it turns out that when you’re launching a startup, having companions for the journey is incredibly beneficial.”
Of course, the experience isn’t entirely negative—or at least, ideally it shouldn’t be. Yet, if you’re truly committed to your goals, Disparte suggests that sharing your path with others increases your chances of achieving success.
