Categories and Levels of Risk

We often think of risk as one big "blob" of a concept... risk is risk, and that's all there is to it. "I'm not a risk-taker" becomes the mantra of those who are missing a very important concept:

There are different categories of risk, as well as several levels of risk within each category. It is not necessary (or appropriate) to take the same level of risk in all categories. Simply because you take action in one category of risk does not mean you must take risk in all categories, or in all categories equally.

Let's take a look at the major categories of risk. They are:

Physical (skydiving and other physical risks fall into this category)

Emotional (risks involving love, trust, and other personal feelings and emotions are here)

Financial (these relate to investing, earning power, saving and spending)

Position/Power (this category involves your position and influence at work, as well as your standing in the community)

In which categories do you need to take more risk... or maybe even less risk? Appropriate levels of risk vary widely from person to person.

The first three are are fairly obvious:

Low: At this level, a salesperson may not make outbound sales calls, but is simply be waiting for sales to "magically" come to him; or a single person desires a companion, but doesn't go anywhere appropriate where other singles with his or her interests congregate.

Moderate: At the Moderate level, someone may go to a networking or singles event, but spend the evening talking only to people they know - or possibly talking to no one at all.

High: When we're operating at a High level of risk, we're making not only hot and warm calls, but cool and cold calls (if necessary), or going to networking events and making new contacts, or joining a service that can provide contacts we can meet.

We can all identify with these levels of risk, but too many of us are stuck at the Lowest Level, where the risk is low, but unfortunately so are the rewards. Most of us need to focus on appropriately increasing the level of risk we take in our personal and professional lives, in order to reap higher rewards and achieve our dreams.

The fourth level (the one to avoid) is the STUPID level (yes, there is a stupid level)! This level involves going too far without careful consideration and analysis of the risk's consequences. A stupid risk is one done in haste, without good reason, or without consideration for the safety and security of yourself or others. (One example is from a story on distracted drivers published in Reader's Digest, which described a woman who actually admitted to shaving her legs while driving her car!). I don't think any of us would disagree that this was a stupid risk!

We also see a lot of teenagers at this level; they feel invincible, as though "that would never happen to me." As we review our own actions for purpose and meaning, we must also encourage our teens to begin considering purpose, reason and consequences for their actions.

Never compare your risk level with someone else's. This will only make you feel falsely inferior (or superior) to someone else. Your appropriate level is determined by your current position in life, your experiences and background - in essence, it is very personal and subjective, based on the factors in your life that make you YOU. What you may consider to be no risk at all could be a huge risk for someone else - and vice versa. Take risks in appropriate steps, at appropriate levels for your experience and goals, and make a commitment to increase them as needed to achieve the next step of the journey.

All risks must serve a purpose - to achieve a dream. You can't take more risks if you don't identify which should be taken and what it will accomplish. Therefore, you must first identify and clearly articulate your dream. Once this is done, you will be able to identify the fears holding you back, as well as the specific risks necessary to overcome those fears and achieve your dreams.

Have you identified your dreams? Have you taken the risk to tell anyone about them, so they can encourage you and hold you accountable?

What dreams and risks have you identified? How will you achieve them? I'd love to know!