What is risk management?
All risk isn’t equal.
Progress is similar to gambling.
The more you put on the table, the more you can potentially walk away with.
Sometimes you’ll win and sometimes you’ll lose.
To play your cards right, you have budget your risks wisely.
Risk Management Is About Budgeting Your Actions
It’s the strategy of choosing the moves with the highest return.
Say you’re at a bar. You spot your ideal woman right across the room. Perfect size in every way. She has the most beautiful face you have ever seen. Right next to you is a frumpy below average looking girl who is giving you the puppy-dog eyes and biting her lip.
Do you risk the potential ego bruising by approaching the girl you want, or do you play it safe and immediately pounce on the sure thing (lowering your situational value in the process)?
Taking the bigger risk and succeeding would be infinitely more satisfying in my opinion.
Starting your own business works with the same principle.
- Are you willing to take healthy risks for your dream?
- Do you have the willpower to push through your pain?
- Do you see initial setbacks as hopeless, or insignificant?
Failing is merely a learning process. It’s YOUR choice whether you let it affect your motivation.
Somewhere in Los Angeles is a 17 year-old skateboarder who grew up in poverty. He’s driven to make it out of his run-down neighborhood. Every day after school, he uses his lunch money to take the bus across town to practice at a skatepark in a more affluent area.
His dedication to his craft allows him to rapidly increase his skills. A magazine photographer takes notice of his talent and invites him on a photo shoot to a huge staircase that has appeared in numerous videos and is notorious worldwide.
This is the kid’s moment of opportunity.
There is the potential of being severely injured, facing medical bills that his family will not be able to pay. On the flip side, if he lands his trick, he will be featured on the magazine cover and be offered multiple sponsorships. There’s a huge risk and a huge reward.
Does he manage to pull it off?
I’ll leave that up to your imagination to decide.
If you’re willing to give up, you might as well be dead. There’s no point in living if you’re barely putting in any effort.
Be Hungry For Success
Be willing to follow your goals to the ends of the earth.
Gaze into the fucking abyss that lies beyond, and then proceed to walk through it.
There’s no guarantee what will happen in that uncharted territory. You may find yourself confused, and momentarily lost.
Have faith in your abilities. Let your determination illuminate your path.
People Always Want Something For Nothing
They buy into get-rich-quick schemes and instant solutions. There’s no willingness to endure any kind of struggle. Even if you lose everything, there will always be another way if you put your mind to it. At least you’ll be able to live with the satisfaction of living life by your expectations.
Imagine yourself on your deathbed at 80 years old. You lived an average life. You got married, had kids, worked a bland 9-5.
Your life was comfortable, yet there remains a nagging feeling in the back of your head that you could have done better.
You always played it safe by taking the easy way out. There was never any situation through which you made yourself vulnerable.
Fear and anxiety caused ample opportunities to pass you by. As you take your final breath, you exhale with the disappointment of what could’ve been.
Suddenly, you awake.
It was all a dream. You are back here in the present. Still a bit shaken from your nightmare, you realize that there’s nothing to fear.
A Person Living Without Taking Any Risks Is
Not Truly Alive
The greatest gains are made by enduring the greatest sacrifices. The goal is to understand risk and utilize it to your benefit. Taking too far of a leap without ability or insight is a recipe for failure.
Temporary discomfort is worth a lifetime of satisfaction.