Qualities: RISK

There is risk in almost everything we do. Some can be measured or predicted, while some is random and surprising. It is also usually possible to reduce risk by taking precautions, or to increase it in search of adventure or greater reward. We can buy insurance or avoid danger. All of this should be planned where possible, instead of wandering through life taking chances without purpose or awareness. A single accident can destroy a life or a career.

Take calculated risks. That is quite different from being rash.
––General George Patton

In the end, what we regret the most are the chances we never took.
––Frazier (Last TV Show, 2004, 11 years)

Beowulf trusted in his own strength,
the might of his hand. So must any man
who hopes to gain long-lasting fame
in battle; he must risk his life, regardless.
––Beowulf

There is the thrill of living “to the fullest,” taking chances, enjoying challenge and the rush of adrenalin. Seeing life as an adventure is like that. It is living life by taking risks, even risking life, and thrilling in that sense of skill and uncertainty. It is certainly not an image fore everyone. But for those who see life this way, there may be no other way to live. Everything else is boring and tedious. And unlike life as art or as literature, life as adventure never plans a proper ending. When it’s over, it’s just––over.
––Robert C. Solomon, The Big Questions, 1990

The reason that so few people are financially independent today is that they place many negative roadblocks in their heads. Becoming wealthy is, in fact, a mind game. And millionaires often talk to themselves about the benefits of becoming financially independent. They constantly tell themselves that it is very difficult to achieve that without taking some risks. Before you can become a millionaire, you must learn to think like one. You must learn how to motivate yourself constantly to counter fear with courage. Making critical decisions about your career, business, investments, and other resources conjures up fear, fear that is part of the process of becoming a financial success.
––Thomas J. Stanley, PhD, The Millionaire Mind, 2000

Sometimes the safest thing you can do is attack. Sometimes the most dangerous thing is to do nothing.
––John Roberts


Risk must be managed, but so must fear, greed and ambition. Some fields or activities do have systems for accurately measuring risk and reward, while others must accept the chaos theory of a changing and confusing world beyond our control. It is important to isolate the risk we can control, and work on that. Even that risk we cannot control can, to some extent, be avoided.

Normally, the greater the risk, the greater the reward. In the investment business we accurately measure the risk of individual investments so that investors can see what could happen in the future. This is done by showing the long-term statistical, cyclical record of extremes and the frequency and degree of their occurrence. They can then decide if they are willing to accept the risk according to their nature and situation and the potential reward.

The risk in many things in life, however, cannot be quantified accurately. What is the risk of being hurt in a relationship? What are the chances of succeeding in a venture? How can we measure the risk vs. the potential reward where so many things are beyond our control? This is the hard part, and we can only make judgments based on education, experience and a measure of positive hope or realistic pessimism. It helps to get some good advice from someone we trust. Obviously a lot of experience is valuable in sensing danger and opportunity.

I have taken a great many personal risks in flying, on mountains, on and in oceans, driving cars and bikes, in the stock market and elsewhere. It has been suggested that I have an unhealthy addiction to adrenalin or a foolish urge to develop my ego and image. I accept, especially in the risk to my family responsibilities, and I have reformed myself in my mature years. But, I do not regret some of those exciting activities, which have helped me build self-confidence and great satisfaction.

Each of us must be careful in life according to personal characteristics and situation, but let us not lock ourselves in closets of safety. There are causes, such as the defense of our freedom, which necessarily expose us to peril. There are personal opportunities to be stronger and better by challenging the world and our own weaknesses. We must not all swim in the shallows. Some individuals, some nations, must lead, which is usually done in the face of risk.