Risk Informed Decisions

Every decision made involves some level of risk. So when faced with decisions, how does fear or risk/reward come into play? Whether it’s deciding to invest money, take a chance on a new relationship, moving to a new city, taking a new job or even going to a crowded event we have to look at the level of risk we are taking compared to the opportunity for reward.

Here are a few examples:

Low Risk/High Reward: The idea is to minimize risk and strive for higher rewards. The risk of trying a new restaurant for lunch is low in that it’s just one meal you may not like, but the reward could be high if you find a new great lunch spot.

High Risk/Low Reward: If you are going to go to the store during a pandemic to get a box of cookies, that would be an example of taking a high risk of getting sick, while the reward of a box of cookies is low in comparison.

High Risk/High Reward: Each individual has their own tolerance for risk. One person may love bungee jumping and the reward may be worth the risk of injury.

Life involves one risk after another, and some pain is unavoidable. When making a decision, take an honest look at yourself and your situation. Look at the upsides and the downsides to determine if the risk outweighs the reward.

“Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure or nothing.”   Helen Keller