“A ship is always safe at the shore — but that is not what it is built for.”
― Albert Einstein
There’s one thing that often holds people back from pushing the boundaries, hindering their ability to achieve more. It’s an overwhelming and unpleasant emotion that can essentially threaten success — it’s fear. We’ve all felt it, but do you allow it to hold you back?
The truth is, waiting for certainty feels right. There are less risks involved, and in turn, fewer possible consequences. There’s just one issue — if you never take any risks, you may miss out on some life-changing rewards. Risk-taking encourages opportunity and growth, allowing you to achieve success. Have you been taking enough risks?
Risk-taking is a skill
Employers often look for individuals who can work in a team, make sound decisions, adapt and take risks. It’s important to note that truly successful people are not taking risks left, right and center. They are experienced and understand the limits of the risks they take.
In order to be successful, one needs to understand the risks involved, problem-solving along the way. It’s not just about taking risks, it’s about being an effective risk-taker. Successful risk-takers exhibit discipline and understanding, and are generally achievement-driven.
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Risk-taking is a behavioral skill that can be improved. Over time, you can become more comfortable with risk-taking, but this involves practice and the development of new habits. Perhaps this is easier said than done — your genes could be influencing the way in which you view risky decisions.
Study: the genetics of investing
Stanford was interested in how our genes influence financial decisions and risk-taking. While focusing on the serotonin transporter gene, it was found that individuals who had the short allele of this gene, were less likely to engage in active investment decisions.
Basically, those who exhibit a combination of anxiety-generating genes tend to worry, leading to “safer” decisions. Researchers explained that the link between one’s genes and financial risk-taking decisions is based on an individual’s level of neuroticism — a trait that is characterized by fear, worry and anxiety.
These individuals mainly focus on what could go wrong, instead of what could go right. When asking the volunteers how they would divvy up $10,000, they had three options: bonds, cash or stocks. On average, participants with two short serotonin transporter alleles kept 24 percent more than those with two long alleles — meaning, they were less likely to “gamble” with their funds.
The lead researcher stated, “The difference between these individuals is not how they react to outcomes, but how they think about the decision before a choice is made.” He went on to explain, “You’re not a slave to your genotype. When you’re aware of certain traits that influence your behavior, you can essentially work toward altering that behavior.” In this case, the behavior is risk-taking.
What type of risks lead to success?
As mentioned, the large majority of risks that lead to success are planned, organized and calculated. Individuals who gain success often have great faith in their abilities and decisions. That is because the better you become at analyzing a risk — avoiding as much of that risk as possible — the more capable you will become.
The truth is, not all risks are created equal. There are many risks that can be managed, and as time progresses, there are generally ways to improve growth. However, other risks such as something that will compromise the quality of a product or service, most certainly increases the risk of failure.
In this sense, there are technically bad risks and good risks. Of course, nothing is guaranteed, but bad risks can be avoided, while smart risks should be taken. Companies who display more mature risk management practices tend to generate the highest revenue growth. That’s because when practicing risk management, real results are achieved.
When you’re confident in the risks you take, there’s less guesswork. Although nothing is for certain, smart risk-takers are not going into a situation blind. They know what the possible outcomes are, as well as the factors that influence those potential outcomes.
A good risk is one that will strategically push you toward something more. When you take positive risks, you get one of two things out of the overall experience. Either you achieve what you wanted — whether you landed your dream job, benefited your love life, etc. — or you don’t get what you wanted. If you do not get what you want, you will have gained beneficial knowledge. Everything is a learning opportunity and if you never take risks, you will be without either of these potential benefits. At the end of the day, risks encourage a full life, helping you achieve and experience more.
Just remember to:
- Fully understand a risk before taking it: If you believe the rewards will be worth it and you have the support you need to make it happen, take a leap of faith. You’ll either gain what you wanted or gain a valuable learning experience.
- Expect some failure: It will happen. Being a risk-taker means that mistakes and failures will occur. Know when to quit and always take something away from the overall experience.
- Be authentic and take risks you believe in: Stay true to yourself and remember, we only have one life to live. Make it count!
—Krista Hillis
Krista Hillis is passionate about nutrition, mental health, and sustainable practices. She has her Bachelors in Psychology and Neuroscience and is still active in her research. Studying both the body and mind, she focuses on natural health and balance. Krista enjoys writing based on her ability to inspire others and increase overall awareness.
Sources:
http://www.ey.com/GL/en/Services/Advisory/Turning-risk-into-results-Mature-risk-management-drives-financial-results#.VxjKX0vxV68
http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0054632
http://patch.com/california/paloalto/a-born-risk-taker-stanford-examines-genetics-of-investing