Risk management strategies in our daily lives

Risk management strategies in our daily lives

Life is admittedly fascinating. We dream, we design, we contest. Sometimes we achieve our goals and become satisfied and happy. In other cases, we have a hard time and this saddens us, maybe even makes us angry. 

Every day we are all called upon to make decisions in every activity. Important or simple decisions, concerning our interpersonal relationships, the way we communicate, our financial transactions, our very life course. Before making a decision, we first make a choice, often choosing between several alternatives. But this choice, whatever it may be, always involves a risk to a certain extent.

By the phrase “we take a risk” we mean that we make a choice without being completely sure of the consequences or the degree of success of our energy. The good news is that we can be trained to take advantage of various strategies (ways) of managing this risk. The goal is to achieve the reduction of uncertainty and to feel safer with the result. 

A risk management strategy is to gain control. In other words, we try to control and evaluate the risk that the parameters of our choices have, making the best possible choice, while reducing the likelihood of our exposure to risks.

Another strategy is to take care of the safety of our choice. In other words, to make the choice we want, while putting in some insurance safeguards. An example would be when you  buy your first car and you make sure to insure it for possible damage, accidents and theft. 

Finally, a risk management strategy, sometimes very useful, is to avoid the risk itself! That is, to completely avoid taking a risk, especially when we judge that we are in some danger. A jump in the sea next to dangerous rocks on a day with big waves, may offer us a beautiful photo, but it may also have an undesirable outcome. It looks like a risk we don’t have to take.

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