Thursday, February 19, 2009

Nature Of Risk


Life involves a risk
Drink coffee - business risk, and the exit door of his house has a hidden danger. This was demonstrated a few weeks ago when, according to The Washington Post, the man died from his mug of coffee. He came for the morning newspapers, stumbled and fell. Mug broke under his weight during the fall, mortally wounding him their fragments. This history is shown not to increase your mind when drinking coffee, or to demonstrate the danger of walking with a drink. Rather, it is a tragicomic illustration of the fact that our life is connected with risk. And you never know where the danger lies. Life - a game of chance. We risk our lives every day, no matter whether we travel on oceans, or never come out of his house.

Money is no different
Our money also are in constant risk. Over thousands of years, existed until the government and the money stolen from the government of its citizens a lot of money in the form of inflation. Due to continuous increase in the supply of money without an adequate increase in their cost, all currency is slowly but surely losing its value over time. If you put your money into a bank, then over time you will understand that the loss of money due to inflation, the risk of losing everything even in the event of any problems at the bank.

Risk management is not?
Money in the mattress does not make sense, a bank account is not much better. There is no way to guard against erosion, not making choices, and this choice creates a risk. Buy a house? The house can burn down to ashes, or the real estate market could collapse. To invest in their own company? If the company fails, you at the same time, and lose their jobs and their capital. Buy securities and hopes that they will continually grow? But what about the periods of recession and economic disaster? In any case, any your decision carries a risk.

But there is good news - the risk can be turned into profit. That is why any reform, and pose a danger and opportunity. Capitalism does not work on the principle: first come - first received. He rewards those who have the ability, endurance and to find opportunities where others do not see, to show hard work and succeed where others have failed and retreated. Every business person is ultimately involved in the risk assessment. In terms of capital facilities in order to work with the expectation of its growth. All types of business, in that sense, identical. Correct solutions lead to wealth and success, wrong lead to bankruptcy and reallocation of resources from weak to strong. This is capitalism and

Take risks to achieve something
Already more than once stated that the degree of risk that we are willing to accept, is directly dependent on what we want to achieve. If you want to live safely, then you must make bold moves. If your goals are scarce and few, they can be achieved easily and with less risk of failure, but with a higher risk of dissatisfaction, as soon as you reached them. It is sad to see a person who burns a desire to live, but avoids the risks and living only half of life. This person feels worse than someone who tries and fails, or someone who has never had any dreams at all. Mediocrity sentences itself.

Blind risk or having
If you study the risk, then understand that there are two kinds of risk - the risk of blind and calculated risk. First, a blind risk is a waste of time and energy. Blind risk - this is a business card laziness, irrational expectations and playing with destiny. Blind risk - this is a meaningless game, the emotional decision, the game sosunka. A person who blindly accepts the risk, showing all the "wisdom and intelligence" deal in drunken driving.

However, the risk of having built the state, nation and empire. Calculated risk-taking and bold vision go hand in hand. Use your intelligence to see the opportunity to resolve things by logic, and then move forward with strength and confidence - this is what makes a man above the animal. Calculated risk is at the core of every great achievement and success, since time immemorial.



turtletrader.com

No comments: