As the saying goes “don’t put all your eggs in one basket”. Instead —to continue along with the egg analogy—, by putting your eggs in multiple baskets you are diversifying your risk: drop one basket, and eggs in the other baskets will still remain intact.
So does this idea of ‘risk diversification’ have relevance for conservation planning? In their 2012 PNAS paper Amy Ando and Mindy Mallory argue that yes it does, using a case study involving the prioritisation of land for conservation under climate change uncertainty to demonstrate how and why. Their paper, “Optimal portfolio design to reduce climate-related conservation uncertainty in the Prairie Pothole Region” focuses on adopting a well-established technique from finance – Modern Portfolio Theory (MPT), to develop a diversified land portfolio for conservation in the US Prairie Pothole Region that hedges against future uncertainty due to climate change impacts. Continue reading