Risk

66Mustang

Another random topic.

I was having a chat recently with a family member about risk.

I seem to be very risk averse. When selling something valuable like a car or a watch I will sell to a dealer and take less money than if I sold privately, because I don’t want the risk of being robbed. I’m also socially not a risk taker and won’t risk talking to most people when out and about just in case. I’m also cautious when choosing financial investments for family - I wouldn’t go for high risk, high reward, I stick to low risk. If I had the money, I wouldn’t own a rental property in case I got tenants who trashed it or refused to leave when asked to vacate. Then there is driving. Whilst driving I will always slow down when there is danger of potholes and the like while many drivers don’t seem to mind the risk of getting a puncture. I even went through a phase of bringing 2 car keys out with me recently in case one didn’t happen to work, I just didn’t want the risk.

The person I was with seemed to have a greater appetite for risk but still wouldn’t class themselves as a risk taker. For example, we were walking the dog, if it was my dog I wouldn’t let it off its lead with other dogs around but this person was happy to take the risk that the other dogs were friendly. This person also sells their cars privately because they get more money that way and as yet hasn’t been scammed.

We came to the conclusion that a little bit of risk is necessary in everyday life and that while it is good to avoid reckless risk, if you avoided all risk it would become unhealthy. If you didn’t risk anything at all, you would never leave your house.

I’m wondering what peoples thoughts on this are. Where are you on the spectrum? Do you consider yourself a risk taker? Do you think a little risk is required in life, or can you get through life with minimal risk?

I’m looking forward to reading any comments.

leeCal

I believe in taking calculated risks if I have to. I usually analyse a subject to pieces before I take a step and even then I’ll take extreme precautions to mitigate risk. So,yes, I’d say I’m risk averse generally.
 However I have gambled on horses and the national lottery all on paper at first and then with actual money, both systems I invented and employed eventually paid off but because the element of risk couldn’t be totally quashed I stopped having pocketed the rewards. As I said, calculated risks only and these days only if I must.

ernestinadimarco

Whenever we undertake a project, risk is inevitable, since projects enable change - and whenever you have change, it introduces uncertainty and hence risk.

ernestinadimarco

A risk is defined as an uncertain event which should it occur, will have an effect on the project meeting its objectives. These uncertain events can be positive in which case it would be called an Opportunity, when negative it is called a Threat. Both have the common thread of uncertainty.

66Mustang

Thank you everyone for the thoughts.

woodbine I think I’d agree - we read all the horror stories on the internet “I tried to sell a car and was scammed” but we don’t see the probably vast majority of cases where someone does something and it goes smoothly.

I will have a look for that book Mike, it sounds like it could be useful to me, thanks.

janer1967

I take a risk everytime I leave the house lol like most people do but have the added risk of not being able to see much but I try to not let it stop me 

I don't take many risks did once go on a cruise on the nile on my own and that was pretty scary travelling alone but soon made friends there was another woman and man on their own so we joined forces and all had a brill time