Being risk averse means exactly that – that you don’t like to take actions or engage in behaviors that are risky. Clearly, there are different levels of risk-taking that you may try to avoid. For example, you may avoid skydiving, but are open to trying new foods. Or, you may be so risk-averse that even changing a part of your routine is challenging.
The Benefits and Drawbacks of Avoiding Risk Taking
Being risk averse isn’t necessarily a bad thing or a good thing. Like all things in life, striking a balance is good. Being riskier in your decisions can be beneficial as:
- Taking risks opens up more opportunities;
- Taking risks can be exciting;
- When you take risks, you are less likely to have regrets about what you didn’t do or could have done; and
- Sometimes, success is only possible by risk-taking.
However, risk-taking isn’t all positive and no negative. There are some drawbacks to risk-taking, including:
- Risk taking is more likely to open the door for failure;
- Taking risks can mean losing things that are valuable;
- Risk taking can upset your balance and leave you feeling ungrounded; and
- With all risks there are consequences – sometimes those consequences are serious.
When to Take Risks and When to Play it Safe
So if risk-taking is both beneficial and disadvantageous at times, how do you know when to take a risk and when to play it safe? Before you take a risk or decide not to take a risk, make sure you consider what you want to achieve, what the consequences of taking the risk or not taking the risk are, how you’ll feel about any potential outcomes, and what the odds are of each decision ending up in your favor.
When you are facing an opportunity to take a risk, how do you decide what to do?
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