The two risk mistakes

Risk mistake number one: Risk means failure.

This worldview equates any risk, no matter how slim, with a certainty. If the chances of hurting yourself skydiving are 1%, it’s easy to ignore the 99% likelihood that it will go beautifully.

If you carry this worldview around, you’re not going to take many risks, because your fundamental misunderstanding is that whatever is uncertain is bad.

Risk mistake number two: Low risk events don’t happen.

This is the stock investor who freaks out when the market doesn’t go up the way he and everyone else expected it to. The reason that some investments offer higher returns is that they’re not guaranteed to work. Implicit in that high return, then, is the clear warning that sometimes, you won’t get what you’re hoping for.

I’m not distinguishing between optimism and pessimism. The optimist is well aware of risks, but deep down, she believes that things are going to get better. The risk-blind individual, though, is willfully (or perhaps ignorantly) unaware of what risk actually is.

Most of the things that we do have two possible outcomes: they might work or they might not. Being able to live with the possibility of either is essential if we’re going to move forward.

Reblogged from: here

Advertisements

About janaknmistry

Janak is a 1984 born, MSc and MBA educated from Mumbai, India. He is an avid traveller by choice and a solopreneur by luck. He has clocked many thousands of kilometres on a motorcycle. It was his journey to the Leh-Ladakh, which motivated him to write about his experiences throughout the journey in enjoying the beauty, pain and hardships. He has successful authored and published his book called “Journey in Time with Timeless Memories” which is released and published in Germany and available all over the world besides Asia and the Middle East. Apart from being an author he is an active book reviewer too and have reviewed books by some of the established authors in USA. Janak runs a motorcycle expedition co. called Jack n Jill-The Moto Expedition Co. He is passionate about travelling and photography, which helps him find a beauty and meaning in this wide busy world. It was his journey to the Leh-Ladakh which motivated him to write about his experiences throughout the journey in enjoying the beauty, pain and hardships. He is passionate about travelling and photography which helps him find a beauty and meaning in this wide busy world.
This entry was posted in Self-Realisation and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s