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These Two Steps Will Help You Get Clarity On Risk

Updated: Feb 17, 2021

Sometimes a minor threat can stir up major anxiety. This can lead to impulse and fear-based decisions, or worse, inaction. Clear the fog and things get easier. If you're unsure about the associated risk, start by ONLY considering 1.) probability and 2.) severity. In other words... How likely is it to happen? If it does happen, how bad is it? For probability, start by considering if the event has ever happened before. If so, which past conditions accurately reflect present conditions? Can you change enough conditions to significantly lower the probability of the threat? For severity, just play out the scenario to its logical conclusion. If A then B, and if B, then C... If the situation isn't inherently dangerous, but your results are extraordinarily catastrophic, you're likely being unduly influenced by fear. If that is the case, ask yourself if "B" is REALLY the logical conclusion of "A". If the resulting "C" isn't that bad even in the worst-case scenario, and you've considered all realistic factors, then you know the risk isn't severe. Once you understand the threat, do the same assessment for an opportunity lost due to fear. How bad would things be if you DO NOT take a chance?

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