"Caution is Not Cowardly.." *, Risk Appetite Changes With Knowledge

 

Many times during my visits with business owners the discussion comes up about taking risks. Most know a lot about this subject. Just going into business is a risky move. However in order for a business to grow more risk needs to be taken. So the question becomes, " how much risk should I take? "  I answer with a question, "how much do you know?"

Knowledge is the key ingredient to proper risk taking. This is not just scratch the surface knowledge or gut instinct, it is a deep understanding about what you are about to proceed in doing. There is good risk taking, and bad risk taking. The good kind has a foundation based in truth and facts. Exhibiting caution by slowing down the process to learn is not cowardly, it is proper risk management. 

What about new ideas where there is nothing to learn from? I would suggest that you do not take the "plunge" until you learn all the facts that are similar or in the same vein as your new idea. It will surely give you more "risk IQ".

 Your risk appetite will change as you gain knowledge. Sometimes it will make you hungry, and other times you will push away from the table. Either way, you will be better off.

Until next time be careful out there and know your risks.

Posted by: G. Kevin Nemith CIC. CRM , Agency Leader for Hilb Group Delaware, a division of  Hilb Mid-Atlantic Group.

knemith@hilbgroup.com

Top 20 insurance brokers and risk managers in the USA. 

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*Noted: "Caution is Not Cowardly" from The Road To Success, by Larry Wall & Kathleen Russell  Copyright 1997