Why wealthy people can engage in risky behaviour

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There has been much discussion in the media regarding the Titan submersible disaster as an example people who have great wealth taking extreme risks. While the reasons they do so vary, some reports have suggested that ultra-wealthy people might feel a greater need to outdo their peers.

Here, two mental health experts at an organization that provides mental health and addiction services, including private luxury treatment residences across Canada discuss how pressures on the very wealthy to prove their status through extreme activity is more than a careless act, and how the stressors in their careers might contribute to this trend.

They also share ways in which familial communication and counseling can channel these impulses toward healthier dynamics and save future generations from high-risk or fatal activities.

Carlos Lalonde is a psychiatrist and president and chief of staff for Homewood Health Centre in Guelph, Ont., and executive vice-president of medical services for Homewood Health Inc.

Sandra Primiano is a psychologist and Homewood Health’s vice-president of research, quality and clinical practice.

Why might some ultra-high-net-worth-individuals feel like they can take more risks than others?

Dr. Lalonde: “I think there are a number of factors that might lead these individuals to participate in certain higher-risk activities.

I do think that for affluent people, many things that may stir excitement and joy to most people might ultimately feel somewhat routine and mundane.

When you have unlimited financial resources and you can buy any luxury item you crave or travel anywhere in the world on a moment’s notice in your own private aircraft, you are probably going to need something a bit more out-of-the-ordinary to satisfy your thriller appetite.

Also, many ultra-high-net-worth people are highly driven, competitive individuals who are motivated for success and achievement. They want to attain a status that others have not or cannot attain.

I believe this tendency might impact one’s motivation to participate in certain activities that are extremely challenging, uncommon, difficult to access, and sometimes risky.

It is also possible that some may possess a belief that the ability to hire the best scientists, trainers, and guides while paying a premium price reduces the actual risk involved in certain activities, which is not always the case.”

Dr. Primiano: “The notion of invincibility among ultra-high-net-worth people can be attributed to several reasons.

Financial security is one of them, as people may feel a sense of invincibility and take greater risks. Greater financial resources and a safety net can offer a sense of inflated security, reduces the fear of failure, and provide you with the means to recover from losses, thus, making you more comfortable taking risks.

Another reason is connected to one’s experience of success. When you experience success in your careers, ventures, and investments, as many wealthy individuals have, this can contribute to a perception of confidence but also invincibility. Past successes build a high level of confidence, and perhaps the belief in power and a higher tolerance to risk.

Affluence also provides you with access to more resources and opportunities. This can also enhance your confidence and lead you to take greater risks, as well as exposure to different groups of individuals with the same means and ideas.

Finally, there is pressure to prove your status to others by engaging in risky behaviours, such as extravagant spending, high-risk investments, and, of course, adventurous activities. This demonstrates superiority and allows you to stand out.”

How might wealthy families feel like they have to keep up with, or one-up each other, in even vacations or recreational activities?

Dr. Lalonde: “Given the unlimited financial resources and ease of travel for many of these individuals, a ‘regular’ vacation may not be deemed as exciting or impressive.

Also, if you are a highly competitive individual, driven by success or material measures of success, it is quite easy to find yourself in a scenario where you are either consciously or subconsciously one-upping family members, peers, or colleagues.

I also believe that while some ultra-wealthy individuals avoid involvement in common social media platforms for privacy reasons, others thrive on them or are required to be connected due to the industry they are involved in. High visibility on social media can drive this tendency further, particularly when those within your social circles are constantly churning out content from their ultra-exclusive private vacation destinations.

This holds true in social gatherings when other individuals may share experiences of their luxurious and extraordinary past vacation experiences. This can lead to feelings of discomfort or exclusion if you don’t have similar experiences to share yourself.”

Dr. Primiano: “This is related to social comparison and the desire to maintain or build status. In order to maintain or increase your social status, you may seek out opportunities to stand out and demonstrate your wealth and superiority. You may be driven to ‘one-up’ others with vacations, purchases, and hobbies.”

Can family or friends help lessen the pressure to engage in risky behavior?

Dr. Lalonde: “Reinforcing healthy relationships and communication within the family is incredibly important for many reasons.

It is vital from a young age to know that your family and friends care for you and show you love based on the person you are, not based on what you have achieved.

Having secure attachments and close relationships also helps solidify the foundation of one’s sense of self and reduces the likelihood of someone feeling as though their self-worth is based solely on success and achievement.

Having open and honest communication allows an opportunity to turn to each other to provide emotional support when a family member is feeling stressed or insecure in certain areas of life, as well. It also provides an opportunity to discuss the downfalls of engaging in an ongoing competition to achieve material success and to reinforce the fact that this rarely brings happiness or any type of lasting satisfaction.”

Dr. Primiano: “Regular communication can help family members communicate openly about their stressors and worries, and how to address these in a more productive, healthier manner. Being aware of common issues among wealthy groups can allow families to identify these behaviours in others, and offer support or prepare younger members for facing those pressures.

Another important point is developing a value system as a family that is consistent with other things that will bring you happiness. For instance, Dr. Sonja Lyubomirsky in The How of Happiness has extensively studied these principles and found that the following strategies and behaviours lead to happiness. If families develop these within their value system and support one another, this can lead to greater happiness:

• Cultivating gratitude
• Nurturing relationships
• Engaging in acts of kindness
• Practicing optimism
• Cultivating mindfulness
• Finding and using strengths
• Savouring experiences
• Fostering a growth mindset

What kinds of professionals can help address the kinds of stressors that can lead to risky behaviour?

Dr. Lalonde: “There are different types of mental-health professionals who can provide support for individuals and their families.

In some situations, engaging in simple supportive counselling with a qualified counsellor at school, at work, at one’s place of worship, or elsewhere in the community might be sufficient to deal with minor stressors.

Also, simply learning more about the impact of stress, anxiety, and depression through a counsellor or a high-quality online resource can be beneficial.

For many individuals who suffer from ongoing higher levels of stress or anxiety, however, it is often necessary and very beneficial to connect with a more experienced trained psychotherapist who provides evidence-based therapies for stress, anxiety, and depression.

This mental-health expert might be a social worker, occupational therapist, psychologist, or psychiatrist.

The reality is that there are many excellent therapists with different qualifications. In choosing whom to work with, it is important to remember that the most important predictor of success in treatment is that you trust the person you are working with. Part of this trust is that you believe they understand what you are going through and that they have the experience and skills necessary to support your needs.”

Dr. Primiano: “A mental-health professional, particularly one who provides evidence-based talk therapy can help by understanding the problem, its origins, and working with the individual on finding solutions.

Therapy provides you with a non-judgmental, open space to be listened to by a trained professional and guided in your thinking, feeling, and behavior to improve your situation.

These professionals can help explain the importance of discussing stressors, goal-setting and attainment. They can assist to identify specific strategies that are unique to the individual to support them in achieving well-being.”

Are younger generations in a family where there is an extreme risk taker at risk of repeating these patterns?

Dr. Lalonde: “Second or third-generations might share common traits of being highly driven, competitive, type-A personalities that are incredibly motivated to succeed and achieve things that others are not able to, which may lead them to participate in higher risk activities at times.

With unlimited financial resources, a younger age and maturity level, and an increased tendency to be involved in social media and other platforms, they might even be at higher risk.

I think first generations who effectively provide their insight and lessons learned from their own experiences over the years might be able to have a significant positive impact on their younger family members. Reinforcing and offering warm, open, supportive communication can also sometimes lead to discussion about engaging in certain risky activities before they occur and an opportunity to consider other equally exciting, but safer, options.”

Dr. Primiano: “It’s important to share your family history, knowledge, and experiences with younger generations so that they can understand and learn from the past. Communicating openly and regularly about issues is also beneficial as this creates a welcoming and open space for them to connect. This leads to strong relationships built on trust, whereby younger generations can speak more openly about concerns. If a child or young person has someone they trust and can rely on, that person becomes an ally to support them.

It is also important for first generations to remain open, non-judgmental and encourage communication.

Fostering healthy values and behaviours towards achieving goals and shaping young people’s thinking is equally important. If you focus on helping others, kindness, generosity, optimism, cultivating healthy relationship and so on, then these values can be easily adopted by younger generations.”

Responses have been lightly edited for clarity and length.

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