What Is Risk, Really?

“Risk comes from not knowing what you’re doing.” – Warren Buffett

There are many things we are not prepared for, that we will never encounter.

There are, however, many things that we can reasonably expect to encounter, that we could prepare for, that we ignore (for whatever reason… ).

Some examples:

Divorce is (generally) a result of not addressing risk adequately: not loving yourself enough and choosing the wrong partner, ignoring danger signs (i.e. risks) at the outset; or, not loving your partner enough, and letting the marriage atrophy and wither.

Losing a job is (overwhelmingly) the result of not addressing risk adequately: not adding enough value and becoming expendable; not adding new skills and abilities and becoming irrelevant.

Most every “surprise” is the result of unmitigated risk – of not taking a clear-eyed view of likely scenarios and making sufficient preparations.

Not every risk is completely avoidable. But most every risk that you can identify responds well to mitigation.

For whatever you have in life that is precious and/or critical, consider the risks. Take steps to deal with those risks before they becomes problems, or crises.

One of the great talents in life is balancing moving ahead, focusing in growth and opportunity, and spending time and resources dealing with risk – the “what-ifs” of life.

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