Recently I read a book "What I Wish I Knew When I Was 20" by Tina Seelig. This book provides a lot of fascinating examples and is well organized. I found and got some useful insights from the book. Also, it was very easy to read. I'd like to mention a thing from the book, anyway.The author introduces a thought of risk in a chapter. According to the book, there are five types of risks:
- Physical risk: such as being willing or unwilling to bungee jump off a bridge.
- Social risk: like being willing or reluctant to start a conversation with a stranger.
- Emotional risk: revealing own emotion and feeling.
- Financial risk: a big financial risk taker or not.
- Intellectual risk: willingness to take risk in pursuing scientific inquiry.
According to the finance, risk is the probability that actual return on an investment will be lower than the expected return. And, suppose a financial assumption -- which is the more you take risk, the more you get the return, and vise verse -- is correct (For example, high-risk, high-return research is here). That is, the more we take risk, the more we will get something successful or big, as the following comic strip shows.
With the above idea, I'd like to consider about my risk preference, that means which types of risks I am willing to take. I'm comfortable to take physical risks because I don't think about risk of fracturing a born which some people may worry, while taking social risks are uncomfortable for me as I confessed before: "Shy is not Shine". Also, I'm willing to take intellectual risks such as I like casting doubt on theories and common thought regardless of whether my critics for them are correct and pertinent or not, but I'm not a big financial and emotional risk taker so I may be a cheapskate and an expressionless face...
As Tina Seelig points out, although we are taking a big risk, we don't see ourselves as big risk takers on certain types of risks. For instance, unlike me, some entrepreneurs and bankers don't assume themselves as big risk takers despite spending huge money for investments. On other hand, if someone paid one million dollars for you to play a sky diving, you could never try it out. I think a message comes from these things. That is, "Don't be afraid of failure and shame." But, I know easier said than done. As for the first step of action, take a look at your own risk profile. Which types of risks are you willing to take and don't you see as a big risk? Though it is just a starting point, it would be easy and sometimes helpful for you to go ahead.
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| Comic Strip: Frank & Ernest published on June 23, 2011 |
With the above idea, I'd like to consider about my risk preference, that means which types of risks I am willing to take. I'm comfortable to take physical risks because I don't think about risk of fracturing a born which some people may worry, while taking social risks are uncomfortable for me as I confessed before: "Shy is not Shine". Also, I'm willing to take intellectual risks such as I like casting doubt on theories and common thought regardless of whether my critics for them are correct and pertinent or not, but I'm not a big financial and emotional risk taker so I may be a cheapskate and an expressionless face...
As Tina Seelig points out, although we are taking a big risk, we don't see ourselves as big risk takers on certain types of risks. For instance, unlike me, some entrepreneurs and bankers don't assume themselves as big risk takers despite spending huge money for investments. On other hand, if someone paid one million dollars for you to play a sky diving, you could never try it out. I think a message comes from these things. That is, "Don't be afraid of failure and shame." But, I know easier said than done. As for the first step of action, take a look at your own risk profile. Which types of risks are you willing to take and don't you see as a big risk? Though it is just a starting point, it would be easy and sometimes helpful for you to go ahead.
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