Business Risk… We take it every second of our life..
What comes into your mind when you listen to the word stock market? What is the common word people use when you tell them that you want to invest in stocks??
Don’t do that. It is very risky. This is what 90% of the people around you say. There are wrong and they are right.
Risk and Business Risk:-
Confused?? Be careful when you use the word risky as it is very dangerous if it isn’t used in the right context. This five-letter word has the capability to limit your strengths and to take away your freedom and turn you into a slave. So what is it??
I am not a literature guy to form the definition of it with some beautiful combination of words. As I am an engineering graduate, I will do it in my way. Forming assumptions and expanding it with the results. :D. Let’s start it.
First, assume that the presence of failure is the definition of the word ‘risk’. Let me ask you some questions now.
Why do people ride cars and bikes if there is a chance of an accident that can take their lives away?
Why do people learn swimming if there is a chance of killing themselves in the starting stages of swimming classes?
Why do people travel in flights when there is a chance of a flight crash??
Why people do jobs when there is a chance of getting fired for the company benefits?
Why do people brush their teeth regularly when there is a chance of damaging the enamel?
Why do people fall in love when there is a chance of heartbreak when their partner dumps them?
You can take anything from your day to day life and everything we deal with our living body has an element of risk and a chance of failure. Dig a bit deeper into your routine and you will understand what I am saying.
If the presence of failure is the definition of the word risky, then are we dealing with risk each and every second of our life? No, we are not. Think a bit deeper and redefine our definition of the word risk.
Now assume that just a mere chance of failure is not the definition of the word ‘risk’.Also assume that if the chance of occurrence of failure is very less, then we don’t call it as a risk.
With the above assumption, all the questions that I have asked earlier can be thrashed. We don’t call them as risky when the chances of failure are very less. There is only a 2% chance of meeting with an accident when you travel on a motor vehicle. The chances of getting killed in the initial stages of learning swimming are less than 1%. Flight crash occurrence is less than 6% and the percentage of people losing jobs every year is less than 40%. Surveys reveal these facts. By the way, I cannot comment on the last one, i.e about love failures as it depends. 😀 If you find the correct person, the chances of breaking up are almost zero. 😉
So, is that it? If the chance of occurrence of failure is less, we don’t call that as risky?? Don’t make an opinion yet. 😀
Bungee jump, where people take so much protection before jumping to reduce the chances of killing themselves. Isn’t that risky?
We have already seen that driving a motor vehicle is not as risky as the chances of occurrence of failure are very less. Think about the same scenario in a different way. Driving the motor vehicle when the breaks are not working properly. Isn’t that risky?
Sky diving for the first time after taking all the safety measures, isn’t that risky?
If you can see, the chances of failures are less in the above all. But we call them as risk taking. Why?? Think….
Don’t break your head as I did a few months back thinking about it. Let me try to make it a bit clear to you. Again, I try to do it in Buddha’s way, i.e. understanding something from its opposite meaning.
So what is not risky?
When the chances of occurrence of failure are less when compared to the chances of succeeding and the when the benefits after completing the event are greater when compared to the minute risk we have taken at the beginning of the event, we consider it as a certainty, but not risky. Be clear with it. We call this certainty as Business Risk.
This is the minute amount of risk present at the initial stages of starting an event, like a business where the odds of succeeding are greater and the benefits after success are far greater than the initial risk taken.
Day in and day out, we take this business risk unconsciously. Our mind is tuned to take decisions by taking a business risk as input no matter what you do.
Drinking a glass of water, lifting a pen from the table. Everything involves this business risk. So does the starting of new business and jumping from a mountain after taking sufficient safety precautions. But we call them as risky because we know nothing about them. We state them as risky because we have seen only failure type personalities around us in doing those tasks. We call them as risky because we don’t have the guts to take up the challenge of learning. We state them as risky because we consider other’s opinions in deciding our future instead of believing in our own capabilities. Lack of sufficient knowledge is what people call as a risk. From now on, when someone says not to do something as it is highly risky, understand that they know nothing about it.
If you sweat enough in running behind the things you want to achieve, the chances of failure decrease when you move towards your goals. Progress is the only thing that matters. You are not running behind your goals, my friend. You are running behind your freedom. You are trying to teach a lesson to the people who ridiculed you when you start your run. You are running behind your satisfaction, which is far higher than anything in the world. The benefits you get after you reach there, i.e your satisfaction and freedom, are obviously beautiful than the initial risk you have taken. Yes, I am saying that there is nothing risky in this world to try if you have the stone-like a heart to learn lessons from your mistakes and keep on moving towards your goals.
“Not taking the risk is the biggest risk you are taking in your life.”. -Robin Sharma.
As I go through the articles that are written, I feel like you have the same thought process as mine regarding life and also as a trader (still learning, not started trading a single lot till now). I am a big fan of YTC and Nifty Nirvana.
What I meant to say is that your articles are good and structured and style of writing is also good.
When I read this article, I thought of the movie “The Pursuit of Happiness” which is the most inspiring movie I had ever watched.
I have added your blog to my bookmark.
Keep the fire go on. Be a professional trader. See you in future.