Proceeding Despite Risk and Uncertainty
People with a cautious ('Blue') mindset perceive risks in nearly every activity, while those with a risk-tolerant ('Red') mindset downplay risks. These views span a spectrum of risk perception. Deciding to proceed requires acknowledging uncertainty.
THE IDEA
Tell Him, “This Could Be Risky or Uncertain, but We’re Going to Go Ahead Anyway.”
There’s a certain amount of risk in everything. A Blue sees risks everywhere. If a Red were to say that jumping from a plane without a parachute is a huge risk, a Blue would say that it’s risky to buy a new lawn mower. You never really know what can happen. And the faster things go, the greater the risks become.
When to use it
When evaluating a new business venture, consider both the risks and the potential for growth, and decide to proceed despite uncertainties.
In personal finance, acknowledge the risks of any investment but also the opportunity cost of not investing.
During team decision-making, recognize that different personality types may have vastly different risk assessments, and facilitate a balanced discussion.
FROM THEORY TO EVERYDAY LIFE
In practice
Jumping from a Plane vs. Buying a Lawn Mower
A Red considers jumping without a parachute a huge risk, while a Blue also considers buying a new lawn mower risky due to unknown factors.
Investment Decisions
A Blue sees risk in any investment, while a Red may focus on potential gains and overlook risks.
A MOMENT TO REFLECT
Put it to work.
Think of a decision you made recently: Did you focus more on potential risks or potential rewards? How might a 'Blue' or 'Red' perspective have influenced that choice?
When has your risk perception prevented you from taking an opportunity? Was the risk as severe as you imagined?
How can you balance acknowledging risks with the courage to proceed?
CONTINUE THE CONVERSATION
Source texts
- Surrounded By Idiots (Thomas Erikson)