Smart Risk Management

5

Step Two—Examine Attitudes Toward Risks

After reading this chapter, you should

• be able to implement step 2 of your risk management plan.

• understand your own attitude toward risk taking.

• understand the uncertainty domino.

• see how the risk taking entrepreneur views risk.

• understand the motivation for someone who avoids taking risk.

Exercise: Determine Your Risk Tolerance

Exercise No. 1

Please answer these questions:

Do you take risks? Yes____No____

How do you know that you do or do not take risks?

Is it because other people tell you that you do or do not?

Is your answer because of your definition of risk?

Exercise No. 2

Take this quick self-test by answering “yes” or “no.” These five simple questions will give you an assessment of your risk inventory.

Yes	No	Question
		Do you sometimes have endless debates with yourself when you have to make an important decision—sometimes making no decision at all?
		Do you accept poor service from a waiter or clerk rather than speak up?
Do you have a hard time making an emotional commitment to others?
Do you find excuses to stop yourself from getting a better job, learning new skills, or taking advantage of similar opportunities for self-improvement?
Do you let the disapproval of others keep you from doing things you want to do?

Any “yes” responses indicates that you probably shirk from taking significant risks. I know that some people may not like hearing that. However, in reality, there are many differing attitudes ...