Did You Check My Blog?

07/12/2009

What is your RISK comfort factor?

Filed under: Uncategorized — Jimy Shah @ 4:54 pm

RISK: a source of danger; a possibility of incurring loss or misfortune, is embedded in each and every moment of our life. While driving a car there is a risk of getting hit or we hitting someone. While walking there is a chance of falling or getting hit by a car. After 9/11 sitting in your office or home is also not safe. There is a chance of some flying saucer coming in front of you and giving you the glimpse of your final moments. Cooking food is also full of risk, there are chances of food getting overcooked, burnt, over spiced etc. Investing in stocks is a synonym for risk so it does not need any explanation. What do you think about keeping your money in bank? Well the government makes sure that if the amount is less than $200k your money is safe and you will get it back even if bank goes bankrupt. But if you look at it closely, regular banks gives interest rate of somewhere around 0.1% and online banks give rate between 1.5-2%. Historic data shows that inflation is on average 4% each year which means that by keeping your money in bank you are losing it at a rate of anywhere between 2-4% depending on where you are banking. So keeping money in banks is also risky. Foreign nationals roaming around are in constant risk of being caught and interrogated or harassed if you don’t have your passport, valid status proof etc. Yes, by law foreign nationals are required to carry passport and other proofs with them 24×7, drivers license is not enough. Each of these things has their own risk factor; few are life changers while few are not that serious.

All these things make me feel why am I sometimes reluctant while making decisions thinking that it is too risky? I think “risky” is a relative term. It’s very difficult to say that option A is risky and option B is risk free. When we discard some options based on risk, all that means is that we are trying to minimize our risk. Minimizing risk does not always means maximizing profit or the outcome. If you can minimize the risk and maximize the results then you have made the optimum decision and that’s what we all try to achieve. But most of the individuals whom I have met in my life are “safe players”. They do not want to maximize their profit but they do want to have minimum risk. This is what I call risk free ghetto group. Their mantra of life is very simple, follow the crowd. This will make sure that risk is less as compared to exploring previously unexplored paths. They are struggling to survive and they don’t have the desire or will to stand out. A representative of this group is well known as the common man. The one used by each politician in every other speech as his weapon which he can mould in any shape he wants.

Probably I also belong to this ghetto, but I am at least trying to rethink whether I belong here or not. Recently I have been asking myself questions like, do I really want to do what I am doing? Do I enjoy doing what I am doing? What is it that I can do better? How can I make my money grow in folds rather than reducing in banks? Do I want to be where I am now? I am sure most of us must have asked these questions to ourselves and probably might also have got answer to it. But very few, the brave ones, would have done something differently after answering these questions to make it a reality. Why is that? Because the risk factor is too high in most of these answers which might require significant changes in our life.

I hope this has stimulated some thoughts in your mind and will help you in spending some time thinking about this. It might not be always that you will implement each of the things that you want to do, but giving it a thought and deciding on a firm YES or NO based on our RISK comfort factor helps a lot. Give it a shot; it’s an interesting exercise if you have never done this before.

Image source: http://www.bized.co.uk/

Cheers,

-Jimy Shah

Live 2 Eat, don’t Eat 2 Live!

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2 Comments »

  1. “While driving a car there is a risk of getting hit or we hitting someone. While walking there is a chance of falling or getting hit by a car. After 9/11 sitting in your office or home is also not safe. There is a chance of some flying saucer coming in front of you and giving you the glimpse of your final moments. Cooking food is also full of risk, there are chances of food getting overcooked, burnt, over spiced etc.”

    Well, that is called the “life”

    Comment by Brijesh Chauhan — 07/13/2009 @ 2:55 pm | Reply

    • Thanks Brigi for your comment. Yes, that is called “life” and that is also called “risk”, which means “life” == “risk” is TRUE 😛

      Comment by Jimy Shah — 07/14/2009 @ 2:16 am | Reply


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