Life is brim-full of risks, some of which we take happily and some of which we are thrust into. Anyway handling hazards is an element of our life. Not one of us are unaffected by this facet of our life in most parts of our life. The key to understanding and minimizing negative aspects of the hazards we face is to grasp when taking a risk is correct and when taking a chance can be foolhardy. This subject does not cover risks that are coincidentally thrust on us, but those we opt to take.
This is the meaning of risk that has been given: Risk is the possibility that a selected action or activity (including the choice of not doing anything) that might end up in negative result. When you decide to do or not do something realizing that the result might not be good, that is known as taking a chance.
Risks can be broadly specified into two categories:
- Speculative risks: These are risks that you take, not knowing the probable factors that impact on the result and whether or not you do know, you have no control over any of these factors. That means you are taking a risk wishing that the result would be in your favour.
- Calculative risks: These are risks where you have carefully studied all of the factors. Based on your calculations, the likelihood of a result in your favor is more, then it would come under the purview of calculated hazards.
A good example of how to set apart between figured out risk and speculative risk, would be a simple game of Indian rummy :
- Speculative risk in rummy: You are playing a game with a group of people on the web. The other players playing Indian Rummy Online are totally unknown to you. The cards are dealt to all. You get a glimpse of the cards you hold. You find that most of the cards you hold are no use in forming a sequence. You have got no jokers. All the cards you hold are deadwood cards with particularly high points. The stakes for the game you are playing are truly high. Losing the game would suggest a terrible loss to you. You have got no concept what cards other players have. You haven't got any way of looking at the reaction on their faces to glean the cards they hold. The game offers the option to drop by taking on minimal points. A hopeful risk at this juncture is generally to continue playing the game on the assumption that others too have adverse cards or praying that the cards you pick from the open/closed pile will make the hand you hold better.
- Calculative risk in rummy: Now imagine an eventuality where again you are playing 13 cards rummy online with a bunch of unfamiliar players. The cards you hold in hand are not great but have the potential to be melded into something promising. You're the person placed to play first and the open card is either a joker or a card that will finish a natural sequence or you've got a couple of joker cards in hand. Additionally the deadwood cards in hand do not add up to a particularly high score or the stakes of the game are extremely low. In a case of that kind proceeding with the game with the presumption that it is actually possible to win or as a minimum minimize losses, is a figured out risk.
This simple game of Indian rummy clearly outlines the most significant difference between a calculative risk and a hopeful risk. Same goes for handling yourfinance. When you're in fiscal need, always calculate your sums first before lending. If you don't, and not know all the terms and conditions behind it, the same thing can have a totally different effect and be a hopeful risk to you!
This is the meaning of risk that has been given: Risk is the possibility that a selected action or activity (including the choice of not doing anything) that might end up in negative result. When you decide to do or not do something realizing that the result might not be good, that is known as taking a chance.
Risks can be broadly specified into two categories:
- Speculative risks: These are risks that you take, not knowing the probable factors that impact on the result and whether or not you do know, you have no control over any of these factors. That means you are taking a risk wishing that the result would be in your favour.
- Calculative risks: These are risks where you have carefully studied all of the factors. Based on your calculations, the likelihood of a result in your favor is more, then it would come under the purview of calculated hazards.
A good example of how to set apart between figured out risk and speculative risk, would be a simple game of Indian rummy :
- Speculative risk in rummy: You are playing a game with a group of people on the web. The other players playing Indian Rummy Online are totally unknown to you. The cards are dealt to all. You get a glimpse of the cards you hold. You find that most of the cards you hold are no use in forming a sequence. You have got no jokers. All the cards you hold are deadwood cards with particularly high points. The stakes for the game you are playing are truly high. Losing the game would suggest a terrible loss to you. You have got no concept what cards other players have. You haven't got any way of looking at the reaction on their faces to glean the cards they hold. The game offers the option to drop by taking on minimal points. A hopeful risk at this juncture is generally to continue playing the game on the assumption that others too have adverse cards or praying that the cards you pick from the open/closed pile will make the hand you hold better.
- Calculative risk in rummy: Now imagine an eventuality where again you are playing 13 cards rummy online with a bunch of unfamiliar players. The cards you hold in hand are not great but have the potential to be melded into something promising. You're the person placed to play first and the open card is either a joker or a card that will finish a natural sequence or you've got a couple of joker cards in hand. Additionally the deadwood cards in hand do not add up to a particularly high score or the stakes of the game are extremely low. In a case of that kind proceeding with the game with the presumption that it is actually possible to win or as a minimum minimize losses, is a figured out risk.
This simple game of Indian rummy clearly outlines the most significant difference between a calculative risk and a hopeful risk. Same goes for handling yourfinance. When you're in fiscal need, always calculate your sums first before lending. If you don't, and not know all the terms and conditions behind it, the same thing can have a totally different effect and be a hopeful risk to you!
About the Author:
Brian Bishop is a plastic surgent specialize in cosmetic surgery for the male and he's been in the sector for a sum total of more than 35 year helping folks with the help of installment plans. He is also a freelance blogger during his free time and enjoys swimming surfng and french fine dining. He and enjoys swimmin, surfng and french fine dining