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5 steps to take before you make that risky decision
How To Approach Risky Decisions
- Stop And ask why: Weigh the risk-reward ratio before taking action.
- Seek advice from someone neutral: Seek a mentor who can give unbiased advice on your plan of action.
- Winning is not enough: Achieving an end goal feels shallow after a day. Win the entire game by focusing on success in each and every step and action.
- Reassess your decisions: Don’t just wager big for the sake of it, fine-tune your decision making and tone down the hyperbole and excitement.
- Hold yourself accountable: Analyze other options and make yourself accountable for your final decision
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SIMILAR ARTICLES & IDEAS:
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Key Ideas
Personal Or Core Values
They are what you consider most important in your life, literally what you “value. ” They are broad concepts that can be applied across a wide range of circumstances, as opposed to narrow answers t...
The Benefits Of Having a Core Value
- Having a core values list helps you make better decisions. The decisions you make come more quickly and efficiently than they would without it.
- Being unconscious of your core values makes you likely to keep repeating the same mistakes.
Creating a List Of Personal Values
The core values that are most valuable to each of us come from our own personal experience, not from being taught.
As you put them into practice you’ll get better at internalizing these values and they’ll express themselves subconsciously with smaller decisions, as well.
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Key Ideas
Manage uncertainty and its related risk
- Control the “controllable.” Certainty is vital in business, but also elusive.
- How people cope starts with their attitude. Where there is change, there is opportunity.&nbs...
Unhealthy Ways to Deal with Uncertainty
- Throw up your hands and give up. Then risking it all on the next big move for the company. Learn to fail faster - take lots of smaller risks instead of one big one and get feedback quickly.
- Not wanting to make a decision at all because of fear of failure. Learning from failure is a valuable part of your education. If you make a couple of mistakes but outweigh those blunders with successes, you are okay.
Changing How We Evaluate Success with Decisions
... is critical in uncertainty. We too often judge people by the outcomes of the decisions instead of on the process that was used to reach them.
However, isn’t it better if people had an unfortunate result and a great process than someone who had a successful outcome but flipped a coin to get there?
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Key Ideas
Risk Compensation
Risk protection is normally done to minimize the harm a particular activity can do to us. There are various things we do to reduce our risk, to make ourselves safer.
Behaviour scientists po...
Risk Compensation Effects
- When automobile safety laws were introduced, the drivers started taking more risks while driving, leading to more pedestrian accidents.
- Children (and even adults) take more physical risks while playing a sport with protective gear.
- Safety features like Anti-lock brakes in vehicles ended up increasing the accidents for taxi drivers in Germany
- Child-proof caps on medicine bottles made parents careless about their being opened by kids, including the ones which don’t have the safety feature.
The Carelessness Effect
Having a safety device in place, and armed with the knowledge that we can push the envelope a bit, the appetite for risk increases.
- People who have an emergency fund in place tend to be less careful about their investments.
- People wearing a face-mask in this global pandemic feel like they are safer in crowded places (It’s a face mask, not an Iron Man suit).