OFW guide: Learning how to take risks

One of the hardest things to master in life is learning how to take risks. Some people fear risk so much that they avoid it at all costs but the more daring ones embrace it. Both practices are not healthy. Too much or too little of anything is bad. When taking risks, one should consider the “40-30-30” rule, according to the information site 99u. One could use the 40-30-30 rule in sports where 40 percent of the success rate depends on your physical training while the other 60 percent comes from mental readiness. This 60 percent is then equally divided into your skill paired with experience and your willingness to take risk. Meanwhile, the business site Inc. compiled some take-aways from the 2013 World Economic Forum held in Davos, Switzerland which touched on topics about risk taking. (1) Don't confuse uncertainty with unfamiliarity People are mostly resistant to taking risk because they fear the unknown. This is natural but is often mistaken for the fear of unfamiliarity. Orit Gadiesh, Chairman of Bain and Company, said there was a big difference between "being risk averse and being averse to unfamiliarity." She said the unknown is something that you don't know anything about. The unfamiliar, on the other hand, is something you know but you don't deal with often. Dealing with unfamiliar risks is manageable. As long as you take time to get to know the risk, you will learn how to deal with it instead of avoiding it. (2) When to go against the flow The bandwagon "going with the flow," is a term that describes how people tend to blend with the mainstream, usually avoiding risks instead of taking them. John Chambers, a forum participant and CEO of Cisco, said there are perfect times when a person should be taking risks. These are during times of crises and other game changing situations in an industry. “The best return for companies is when things are really going the wrong way, and you're willing to go against the tide,” Inc. quoted Chambers. He explained that people who are risk averse, especially in big business industries, tend to get left behind by the risk takers who pounce on the opportunity when it presents itself. (3) Innovate against uncertainty Anand Mahrindra, Chairman of Mahindra & Madindra in India, noted that people have to deal with uncertainty most of the time. Mahrindra said that it's actually important that you find uncertainty, face it and then innovate when you're against it. By doing this, you will become a successful and calculated risk taker, Mahindra noted. - Andrei Medina, VVP, GMA News