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Nobody chooses high risk over low risk. People choose various degrees of autonomy, based on what risk they are willing to accept.
by shanghaiaway 9y ago
Nobody chooses high risk over low risk. People choose various degrees of autonomy, based on what risk they are willing to accept.
- TheOtherHobbes 9y agoTraders choose high risk over low risk. Statistically, most day traders end up regretting that choice. I suspect for a good proportion of entrepreneurs, the financial risks are low - it's either money you can afford to lose, or it's someone else's money, or both - the professional risk is low because a lot of companies will still hire you if you fail, and the personal risks are unknown and/or ignored. Being a corporate employee is actually riskier. You can be fired at will with little or no safety net, for reasons that have nothing to do with your own professional skills or mistakes.
- osrec 9y agoQuite the contrary in my experience. For most entrepreneurs, their first attempt is often make it or break it - i.e. the risk is high. The only thing is, the entrepreneur often knows that the odds are not as bad as they appear, because of their personal abilities at managing the risk. That's what they're hoping to get rewarded for eventually.
- osrec 9y agoPeople choose risk based on their appetite. For sure, we try to minimise it, but if your statement were true, no one would ever cross a street or even drive a car. People will often take a higher level of risk in order to improve the potential reward.
- chiefalchemist 9y agoRisk is relative. One person's high risk is another's snooze fest. I also feel you could factor opportunity into the equation. That is, I might accept less autonomy for more opportunity. And of course there's timing. Life is funny like that.