For better or worse, a lot of life ends up coming down to calculations, and none more important than the idea of risk versus reward. And specifically, this often deals with actions. You can think inside your head however you want, but once those ideas get translated into actions (or sometimes words), that’s when consequences start happening.
And five situations in particular where the risk versus reward calculation is going to pop up repeatedly include during business operations, while you’re developing personal relationships, when you’re trying to have fun with substances, the actions you perform during your workday, and whether you choose the permission or forgiveness routes.
The business understanding of risk versus reward will usually come down to money, time, and energy. How much value are you willing to put into some aspect of your business with the intention of getting more than that value back? On a concrete spectrum, how much money do you plan to spend getting to a result, with the intention of getting more than that amount of money back? If that equation doesn’t regularly come back in your favor, then you should avoid the risk factor in the first place.
Personal relationships are risky. Your typical rewards are things like marriage, or even more generally, just being happy to be in the presence of another person. But the vulnerability risk of love is something that many people are very uncomfortable with, and the even the idea of rejection is enough to keep them away from trying very hard to find personal relationships that they can grow into. And unfortunately, there is no consistent answer to this puzzle – it’s all trial and error.
Having Fun Versus Getting Addicted
Certain substances can add to the enjoyment of many events. You can consider something like how drinking can be fun because in small doses, alcohol lowers inhibitions and gets rid of some anxiety so you can be more social. However, past a certain point, drinking can become addictive and lead to all sort of bad things and unnecessary risks. Every individual has to find their own balance.
During a typical workday, there are tons of risk and reward equations you have to deal with. Which project do you need to prioritize? What kind of hard work will result in what kinds of positive movement for your career? Without managing these questions effectively, your work life can suffer.
Permission or Forgiveness
One classic risk versus reward set of decisions you’ll have to make on a regular basis is the idea of asking for permission or forgiveness. This is often a matter of timing, because depending on who is in charge of various things, you can’t always get permission in order to do things efficiently.