Risk: Why we should love it
Most people are brought up to believe that risk is a Bad Thing.
We're brought up thinking that the only reason we should take a risk is either (i) because we have to (every part of our day involves some risk), or (ii) because the "return is worth the risk." And sure enough those are reasons we take risks in our day to day lives.
But there's more to risk-taking than that. Instead of viewing risk as an absolutely untouchable and irrefutable negative side-effect of life, we can instead seek to learn and benefit from the turbulence that risk creates.
Firstly, risk is not an absolute - it's subjective, based on the beholder. Sure, owning a business might be "risky", for example, but it might be more or less risky depending on who owns it. Each person will manage the risk of that business differently. Some will manage it better, and some will manage it worse. As a result, the owner who does the best job of it will beat every other competitor in that market. The competitors, once beaten and rejected, will quit, but they will move on and eventually find a type of risk they can manage better than anyone else will.
And if they're smart, they'll give that successful business owner a call later down the track. They'll buy some shares in her company, and let her manage the risk that they couldn't. In return, they'll sell her some of their own shares, but from the risk they manage best. They'll take some of her risks and manage it better, and she'll do the same for them.
So instead of worrying about risk, where do you have an advantage over others at managing risk? This is your risk - no one else is better than you at managing this risk.
How can you help others help you, by "swapping" your risks with other people? A business is defined by the risks it chooses to take on - this is what grants it the power to charge a price for its products, services and shares. Without risk, none of this gain could be possible. Risk is an opportunity for you to create value for others.
Embrace your risk.
