How to Manage Risks

Risk is an unforeseen hazard, danger, or something that may have a negative impact on an activity or event.

Difficulty: Moderate

Instructions

1. 
    
   Ocean wave

   Defining risk is the first step in managing risk. What are some risks that are important to you? Death is a big risk but it is not something that we can ultimately prevent. We can try to live safe and healthy lives but death can come at any time and for a variety of reasons. A risk associated with death is disease and physical complications. There are some things we can do that may prolong our lives such as healthy living and medically addressing issues which may adversely affect our physical wellbeing. The possibility of accidents is a risk. All we can do is control what we can control. Even if we have good driving habits and drive well, in some circumstances we can encounter an accident because of circumstances beyond our control.

2. 
    
   Orca

   Once we have identified risks we can analyze them. For example, If we are currently in a relationship we can identify the risk on the relationship not working out. Perhaps our relationship is very good. We can examine characteristics of our relationship which lead us to conclude that we have a good relationship and determine the probability of continued relational success. Let's define the risk regarding our good relationship as the probability that the relationship will fail. In a large sense we may acknowledge to ourselves that every relationship fails in the sense that one of the partners will die before the other. So, let restrict this definition to the probability that our relationship will fail while we are still in the relationship. For our relationship to fail, one or both members of the relationship would choose not to continue to support it. What is supporting the relationship? Each member is content with the communication between members, feels supported by the other member, enjoys the company of each other, and considers each other faithful to the relationship. What is the probability that any one of those or other important aspects of this relationship will change? We may recognize that we may not know the answer. As long as we believe these elements are not changing, we may believe the probability of the relationship failing while each member is a part of the relationship may be low. However, what if one member of the relationship finds interest in someone else but does not tell his or her partner? This unknown variable may negatively affect elements of the relationship we find meaningful and then the probability of relational failure may dramatically increase. We find then that in analyzing risk, we make our judgments regarding the likelihood of events based on available information.

3. 
    
   Cat

   Managing risk is to continue to examine potential risks and to analyze them. One risk that may seem significant to us one day may not be seem as important another day. For example, if while in school I study for an examination. My primary risk at this time may be the possibility of failing an examination - what is that possibility? If I pass this exam, then another risk may become important. Managing risks has to do with what is happening in my life currently and also my efforts to project future risks. My perception of risk importance may change. I need to continually update my evaluation of risks.

Tips & Warnings

• Decide which risks are important to you
• Priortize your risks
• Examin your risks
• Manage your risks by evaluating them continually and resetting priorities as needed
• Focusing on risks may influence excessive negative thinking. Make sure you counter-balance your list of risks with a list of past and current successes, and future possibilities, opportunities, desires, and dreams

[hdouglas22]

on 1/23/2009 Great article, thanks. 5 stars!!!

[goodselfme]

on 1/22/2009 Great post. Stopped by for a 5* read for a friend.

[cherold598]

on 1/21/2009 Great topic, D - 5*