Risk-taking is, in better words, a risky business, albeit a necessary factor in successful decision-making.
The 5 P’s to Guide You on Your Path Towards Choosing the RIGHT Risks.
PASSION
By arousing the strongest, most untamed parts of our nature, and stirring up the wild mustangs in our souls, our passion gives us the raw energy and wherewithal to suffer through the anguishing moments that often accompany the right risk.
PURPOSE
Purpose serves to harness our passions and give them direction. Ask, “How will this risk make me a more complete person? How will this risk further my life’s purpose? How will it help me get to where I want to go?”
PRINCIPLE
Right Risks are governed by a set of values that are both essential and virtuous. As mentioned, risks are essentially decisions, and when facing a decision of consequences, principles form a set of criteria against which the risk can be judged.
PREROGATIVE
Right-risk takers view the power to choose as a privilege, and then honor it as such. By consistently making choices at a conscious level, they are better able to make superior judgment calls at an instinctual level — in fast-moving situations.
PROFIT
A Right Risk should come with a real potential for gain. Risks are, well, risky. And in exchange for assuming the potential risk of hardship, you are entitled to some real and unequivocal upside Notice, however, that Profit is the fifth “P”. It’s the criteria that should be assessed last.
OTHER FACTORS TO CONSIDER for Risk Taking:
Downside & Probability
What could go wrong and how likely is it that it will?
Upside & Probability
What could go right and how likely is it that it will?
Controllable & Uncontrollable Factors
What important factors can you control? What important factors are beyond your control?
Reversibility
If you make a decision and it starts to go bad, how reversible is it?
Contingency Plans
What plans can you put in place upfront so you can act quickly if the decision goes south?
Early Indicators
What are some early “red flag” indicators that the decision needs to be reconsidered?
Next time you’re faced with risk, how will you act with the discipline of purpose and principle in pursuit of your goals?
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