Risk

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Since the first ascent, over 500 people have died while climbing or descending the Matterhorn — an average of three to four per year.

About 3,000 people summit the Matterhorn annually.

When risks are high and/or the consequences of failure are high, it is always good to have a good guide/mentor/coach/consultant.

Risk is the likelihood or chance of a certain event occurring. In medical studies, risk is the likelihood of an adverse outcome.

Numerous mathematical models attempt to predict risk, and the insurance industry sells products to guard against individual financial risk.

Michael Crichton wrote: "A mass media society offers its citizens many advantages but accurate understanding of risk is not among them. The media must sell themselves, and they do so by overstatement."

Risk management

See also: Risk management and Optimism bias

Risk management is "the continuing process to identify, analyze, evaluate, and treat loss exposures and monitor risk control and financial resources to mitigate the adverse effects of loss." It is an organized method of identifying and measuring risk and developing, selecting, and managing options for handling these risks.

Importance of taking risks in life

See also: Goal setting and Mental toughness and Achievement orientation and Comfort zone

Part of reaching goals, making progress and mental toughness is stretching yourself to reach your goals which involves taking calculated risks.

The article Benefit from taking risks states:

“

You never really know what you're capable of until you push yourself outside of your comfort zone. When you take risks, you learn more about your strengths and weaknesses. This self-knowledge can be invaluable in both your personal and professional life. Taking risks can lead to new opportunities. If you're always playing it safe, you're likely to miss out on new opportunities. Sometimes, the only way to get what you want is to go for it. Even if you don't succeed at first, taking risks can open up doors that you never would have thought possible.

”

Articles on the benefits of taking risks

• Benefit from taking risks
• Tired of playing it safe? Learn how to take risks that pay off
• Why Risk-Taking Is Required To Achieve Your Goals, Brian Tracy International
• Is Appetite For Risk Taking An Indicator Of Your Future Success?
• If You Want to Increase Your Success Rate, 2x Your Failure Rate
• The Benefits of Taking Risks, MorningCoach
• Breaking Out of the Routine: The Importance of Adventure in Life
• Importance of Taking Risks, South Dakota State University

Risk reward framework:

• Risk reward framework

Quote

"If you want to increase your success rate, double your failure rate." - Thomas J. Watson, the former CEO of IBM, who helped grow the company in its glory days.

As can be seen in the above graphic, part of mental toughness is stretching yourself to meet your goals by taking calculated risks.

MTQ PLUS, the Mental Toughness Questionnaire, measures an persons's resilience and their ability to deal with pressure and change.

See also

• Optimism
• Optimism bias
• Emotional bias