Risk vs Reward
This blog was written by Bobbi Simmons, Assistant Office Manager of Willowview Consulting.
Every business there ever was, and ever will be, was created by people who were willing to take on the risk for the potential reward…but how do we know if it’s worth the risk?
The average acceptable risk most humans are willing to take is 1 in 1 million. That seems reasonable and safe. The odds of you being in a plane crash is 1 in 11 million, okay I like those odds. On the flip side, the odds of you passing in a car accident is 1 in 103, not so great. Yet most of us fear flying in an airplane much more than riding or driving in a car. Why is that? What makes us readily accept some risks but deny others?
Taking risks is hard and nerve wrecking. It often feels very uncomfortable. It takes special personalities to be those big risk takers. Not all of us fall into that category. Our acceptable risk rate is insanely high and that is okay. Its where we feel the most comfortable. All individuals rate risk differently. For example, I choose to participate in mountain biking because the reward of the activity outweighs the risk of wrecking and getting seriously hurt. There are many people who would disagree with that. I am also a very nervous flyer, when it makes sense, I always choose a road trip over a flight. My rationality behind that choice is different than someone else’s. I have a hard time being forced to rely on the pilot for my safety. I am not in control. However, in a car where I am driving, or I trust and know my driver I have a stronger sense of safety over my life. But how can that be? We know the odds!!
Personal benefit and choice. Priorities and Perception.
We are all different, we live our lives differently. That means we each benefit differently in each situation. We have different priorities than the person sitting next to us. An introvert vs and extrovert; female vs male, child vs adult, each risk weighs differently.
I believe that our risk tolerance grows and declines throughout life, like a rollercoaster. I personally have noticed that the older I get the more willing I am to take big risks. Keeping in mind that I don’t have children of my own to care for, therefore my priorities are different than say, a parent. In every phase of life our risk tolerance changes. I also learn a lot from watching one of Willowview’s owners, Layne Lewis be the risk taker that she is. Smart, diligent, purposeful, and faithful, she takes the leap, and her team jumps right beside her.
Potential reward is worth the risk.
Often the reason we don’t take the risk is the fear of failure. But haven’t we learned over the years that failing is how we learn? Failure gives us the opportunity to try again, to get better, to learn from our mistakes. So why are we so afraid?
It’s the risk vs the reward. Is it worth it to you? Are you a risk taker?