Between fear and overconfidence: success through healthy risk management

If you want to be successful, you have to take risks – this is an often-cited credo. But if you overestimate yourself, you run the risk of falling low. It is better to strike a balance between healthy self-assessment and risk assessment.

Learning to control the risks of decisions

We all want to be successful. But success is not a straight line or one Objective. It's a journey of moments of joy and hardship that leads to self-discovery and a higher level of fulfillment.

Along the way, we will most likely have to make choices that can have both good and bad consequences. In these moments, it is important that we practice healthy risk management that helps us manage our risks check and to minimize.

Why "No Risk No Fun" doesn't lead to success

The books on the subject (advertising)

Knowing when to take risks is important. Many People however, proceed according to the motto “No Risk No Fun”. But what does that really mean? Who, for example, a risky Money-Investment strategy can win a lot of money if it pays off, but also lose a lot if it doesn't work out.

Someone the one Strategy with little Risks pursued, however, can win little money if his decision up, but he can also lose less if she fails. This means that while taking risks can lead you down an exciting path, it will also lead you to great financial losses if things go wrong. The lesson here is that protection is absolutely essential.

A lack of protection means life is in danger

Nothing makes this clearer to me than hiking in the Alps, which can be characterized by steep inclines, sometimes adventurous path conditions and extreme changes in the weather. In the worst case, this can mean that a lack of protection means danger.

Perhaps it's also because hiking demands you at every step and feels insignificant in the face of so much natural beauty that I found my recent hike on the final leg of the Lechweg to be the perfect example of the dangers of overconfidence and risk management to illustrate.

Wrong decisions are often based on wrong information

Discounts for your success (advertising)!

The same would be almost ins Eye gone because I made the wrong decision. So my first wrong decision was to cross the point of no return on a rainy day with a very slippery and wet path and start hiking at all.

This wrong decision was triggered by a series of incorrect information and misunderstandings, to the effect that the path would be easy to manage and the personal time pressure of the information provider. Nevertheless, in the end, the responsibility for this decision lay entirely with me. But my lesson from this is: Ask for more information, even if it is annoying to others. After all, it is your risk and not that of others.

Leaders must be able to take calculated risks

Especially managers and Executives must be able to take calculated risks to get one Companys to advance. Because it's a well-known fact that companies that don't take risks stagnate and eventually disappear from the market. But for these decisions, managers need absolutely all the information they can get, even if it is uncomfortable, in order to be able to keep the real dangers as small as possible or avert them.

But the problem does not only affect managers, but almost every one of us: In ours Society we often convince ourselves that taking a lot of risks is a good thing. One way or another we will benefit from it. That's what I thought during my hike when, after a steep ascent, I was faced with an even steeper one Descent was confronted, which led over narrow trails and slippery rocks. And because at some point I was very annoyed, I left the main hiking trail and took a small path that was supposed to get me to my destination faster. Which also succeeded. But in between I had to overcome some fallen tree trunks and other obstacles and in the end I was happy to have arrived safely down there and in civilization.

Risks are more than a necessary evil

This hiking tour went well once again. But what if it doesn't always work out in the end? It is lightTaking risk as a necessary evil when life is going well, but what if you already are Problems has? In order to survive, many people have realized that they must step out of their comfort zone and face life's challenges. And that automatically means taking more risks. However, we must also learn to manage these risks in order to be successful.

The question that always arises in the end in such situations is: Was it worth the risk? Well, that's not as easy to answer as it sounds, because there are two opposing forces pulling you in opposite directions: Courage and overconfidence, the latter often out of narcissism and personal stupidity. And the line we walk between these two points is extremely fine.

The Danning-Krueger Effect: The Hubris of the Stupid?

Because one should not forget that the gift of overconfidence is very widespread in some people, a phenomenon that is also known as the Dunning-Kruger effect. For example, there was a story some time ago about a US congressman who threatened a reporter on camera. The video is now online. Stupid? Definitely overconfidence!

The Republican US representative Michael Grimm from New York initially refused Ask by journalist Michael Scotto from broadcaster NY1, but then came back and apparently threatened the reporter with the following words, which unfortunately were not in the video clear are to be understood:

“Let me be very clear: if you do that again, I'll throw you from this damn balcony. You are not man enough. I'll cut you to pieces like a little boy. ”

bold is cool?

Male RamboBehavior and a lack of impulse control have unfortunately become socially acceptable in US politics in recent years. Grimm later tried to downplay the story as a trivial offense but refused to apologize. Motto: bold is cool!

When I read and saw that, I automatically thought: how stupid is that man? And how much hubris and lack of impulse control does it take to make such a threat in front of the camera? Apparently a lot: In April 2014, federal authorities filed a 20-count indictment against Grimm for fraud, tax crimes and perjury. In 2015, Grimm resigned from Congress and was sentenced to eight months in prison. Perhaps a learning effect has now occurred that will lead to better impulse control and risk management in the future.

This is how optimal risk management works

But how does optimal risk management work? It's important to have a plan for taking risks draw upthat we cannot control. Risks such as the weather, natural disasters and other events beyond our control. However, this is not the only type of risk we should be aware of. We must also take care of ours Health care and take care of our mental health. This post discusses how you can take care of yourself starting today to create a healthy future.

In the end, it always comes down to the question: how risky should your next one be? Projects be? Will the benefit die Costs outweigh? These are questions that can be answered with a careful risk assessment. And they form the basis of risk management, on the basis of which we can and should make our decisions.

Top books on the subject

Read text as PDF

Acquire this text as a PDF (only for own use without passing it on according to Terms and conditions): Please send us one after purchase eMail with the desired title supportberufebilder.de, we will then send the PDF to you immediately. You can also purchase text series.

4,99€Buy

Advice on success, goal achievement or marketing

Do you have questions about careers, Recruiting, personal development or increasing reach? Our AIAdviser helps you for 5 euros a month – free for book buyers. We offer special ones for other topics IT services

5,00€ / per month   Book

Book eCourse on Demand

Up to 30 lessons with 4 learning tasks each + final lesson as a PDF download. Please send us one after purchase eMail with the desired title supportberufebilder.de. Alternatively, we would be happy to put your course together for you or offer you a personal, regular one eMail-Course - all further information!

29,99€Buy

Skate eBook as desired

If our store does not offer you your desired topic: We will be happy to put together a book according to your wishes and deliver it in a format of yours Choice. Please sign us after purchase supportberufebilder.de

79,99€Buy