A Trick to Manage Risk
Have you evolved enough to navigate today’s world? We’d never thought about it before. Then we saw a great article from Time magazine that says we’re moving through the modern world with a pre-historic brain.
According to the research, it’s a problem because it affects the way we analyze risk. We haven’t evolved enough to properly assess the risks we face today.
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How we assess risk
We analyze risk in two ways: instantly based on our feelings and logically.
Most of the time, we use the first way – our feelings – to assess risk. It’s because of the way our brain works. Bells and whistles are quick to go off when we sense risk. However, turning them off is much more difficult because it’s not natural.
So we’re good at assessing short-term risk; we’re not so good at the long-term risks we’re more likely to face in our modern world.
Our definition of bigg success is life on your own terms. It’s implicit in our definition that you own your life. You are the entrepreneur in charge.
There’s a myth that entrepreneurs are risk lovers. While that label certainly applies to a portion of entrepreneurs, you can’t say that about the overwhelming majority of us.
Entrepreneurs are, however, excellent managers of risk. They understand that they can’t predict the future. So they don’t try. They create their own future.
There are many ways to manage risk. One is to diversify, diversify, diversify. That’s the trick – you don’t want to be a one-trick pony. Here are four places to diversify your life:
Diversify your portfolio
We’ve learned this lesson the hard way. Investing is risky, but you can minimize that risk by spreading your investments out.
Diversify your income
Multiple streams of income provide safety. This is more important than ever in today’s business world.
If you’re an entrepreneur, that means not relying on a single product or service to carry you through.
If you’re an employee, it means having a way to make some money on the side. It could be a rental property or a home-based business you can work in your spare time.
Diversify your activities
You gain new insights when you vary what you do. You learn new things by doing new things. You’re able to assess risk better when you bring a well-rounded mind to the problem.
Diversify your relationships
Get to know people who don’t think like you. Listen to their points-of-view. Try to bring some of their thinking into your analysis of risk.
Don’t be a one-trick pony. Diversify, diversify, diversify. It’s one of the keys to reaching bigg success.
How do you manage risk?
Share that with us by leaving a comment, e-mailing us at firstname.lastname@example.org or leaving a voice message at 877.988.BIGG(2444).
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(Image in today's post from pipm)