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.

Similar Posts

  • The Folly of Anger

    “Having a grievance or resentment is like drinking poison and thinking it will kill your enemy.” – Nelson Mandela As we are creatures of and by emotions we must understand that to be angry, or hate, or wish harm to another, or merely hold a grudge, we must produce that state and those emotions within…

  • Default vs Intentional

    Default. Habitual. Less-than-fully-Conscious. Routine. Comfortable. The Usual. So much of what we do is out of habit. It’s routine. It’s just the way we do it. There’s good reason for how this happens and why. We’re built to create and use routines and habits. It’s efficient. It leaves room to focus on threats and survival. It’s primitive….

  • Glow in the Dark

    Sometimes Seth Godin puts out something so good I need to share it with you, in its entirety: Some people are able to reflect the light that lands on them, to take directions or assets or energy and focus it where it needs to be focused. This is a really valuable skill. Even more valuable,…

  • How To Never (Want To) Retire

    I just read yet another article on how retirement isn’t the panacea people think it is (at least for those financially prepared for retirement… ). People seem to have this idea that they will do everything they want when retire (i.e., all the things they said they couldn’t do while working) and live a life of…