Taking Risks

Kekich Credo #78 - Rewards are rare without risks, but take only carefully calculated risks. Make sure the odds are on your side.

What is a risk?  By definition a risk is a possibility of loss or injury.  Risk or the probability of a loss can be measured by using a number of statistical methods including standard deviation, ratios and beta.  Oh, that sounds like math! 

We can control risk by taking actions to eliminate, prevent or reduce the occurrence of a hazard that has been identified. By adopting risk control measures, the aim is to reduce the risks to health and safety.

Risk can also be defined as the combination of the probability of an event happening and the consequences if that event does occur. This gives us a simple formula to measure the level of risk.  Risk equals Likelihood times Severity.  

It is generally true that the greater the risk a person takes, the greater the reward will be if the investment makes money.  If an investor only takes a small risk, the result will likely be to earn a small reward.  This principle is called the risk/reward trade-off. 

Thomas Jefferson stated, “With great risk comes great reward.”  When making business decisions, entrepreneurs must consider the risks and rewards involved.  If they believe that the potential rewards are greater, they will often take the risks. If the reward is too small, it is not worth the risk required to obtain the reward.

The expression “no risk no reward” is a colloquial saying meaning if you don’t take chances then you’ll never reap the benefits.  Reminds me of the saying, “no pain, no gain.”  Another similar phrase is “no risk, no story.” In other words, take that risk!  Even if you fail, you’ll be able to say you tried and you will have a story to tell. That is better than having regrets.  

It is good to take a risk when it pushes you outside of your comfort zone and helps you achieve a healthy goal.  Sometimes taking risks can have serious negative consequences so be sure and consider the results of your actions. 

The biggest risk is not taking one.  Everyone needs to risk taking the road less travelled.  We all need to risk getting turned down and we need to risk making mistakes. Failing or making mistakes is both the worst and best thing that can happen to you. When you fail, you succeed at figuring out another way of not doing something. If you don’t risk making mistakes, then you can’t succeed. Learn from your mistakes and success will come.

 

Risk-takers are people who have a sense of adventure and a passion for life.  They care little for the accolades of the crowd.  Instead they are focused on squeezing everything they can out of every moment. Take the risk and achieve great things, or don’t take the risk and achieve nothing.  A life without risks is not a life, it is an existence.  

# living life abundantly    # published author   # travelling tuesdays