In the business world and our personal lives, we can hear “we face a lot of risks”. What exactly does risk mean in here?
When a risk is high, it means that there is a lot of uncertainty in the future and that the future is difficult to predict. On the other hand, low risk means that the future is predictable, and the uncertainty is small.
In general, the word Risk conjures up the image of something that is dangerous and must be avoided. On the other hand, in investment matters, for instance, the term “high risk, high return” is used. That means if you take high risk, you can expect a high return. But this case is not something that should be avoided by any means. Also, in the business world, taking on risky businesses and technologies can be a shortcut to pines success.
When we hear the word Risk, we tend to paint an image that
“Risk = Avoidance”, but the risk can be defined as the uncertainty of the future. If the impact of risk is acceptable, there is no need to fear it, and we can proactively challenge and overcome controllable risks. What is important; to correctly analyze and evaluate the risks and fully consider how to respond to them.