Effective risk taking

Effective Risk Taking I always remembered being told by my mother not to risk more than I can afford. This thought process has resonated with me for most of my life and still do today. The simple message behind this idea is that we think before we do. Likewise, that we contemplate the consequences first before proceeding any further. My mom felt applying these simple principles would prevent regret and much heartache later. She believed taking risk should be an informed and calculated decision with a defined objective. Her advice to me was "know what you want, determine what it takes to achieve it, accept responsibility for the results good or bad, and have a recovery plan if all fails.

Taking risk is not a bad thing; this is how many discoveries were made and inventions came about. Most people fail at risk taking because they were never prepared to pay the price when the bill comes. They wager with every intention to win but when came up short, they were surprised, confused, and often didn't know what to do.

Some people take risk to win big; therefore they are so captivated by the prize that they become blinded to everything else. In their eagerness to succeed, they ignore logic and common sense disregarding established processes, procedures, standards, and regulations. What some people do not understanding is effective risk taking follows a defined strategy that gives us the greatest probability to win with minimum commitment of resources. It is based on a strategy of high survivability and easy of recovery in the event we fall short. That means we have to develop a mindset of preparedness, adaptability, and flexibility. What is important here is that we are prepared to roll with the punches if the situation changes and absorb the blow if things do not go as expected.

Risk taking signify courage if we succeed but can be deemed stupidity or ignorance if we fail.

Nevertheless, it is exciting and can produce great gains. We got to look at taking risk as making an investment; the risk is predicated upon what we can afford to lose and still survive. Making wise investments indicates we are expecting maximum returns however we can't be so na誰ve that we do not establish a safety net. If we go under the premise of "go big or stay home", we got to be ready to stay home if the situation warrants it. The reality is most people are not prepared for that. It leaves no room to recover, take us out of the competition, and we forfeit our chance to win.