What is a Calculated Risk?

​The 405 interstate north-south  freeway in Southern California has the distinction of being both the busiest and most congested freeway in the entire country because of the everyday heavily traveled freight haulers and commuters alike. In conjunction with our topic today, I wonder how (risky) it would be for me to amble across the 405 without incident?

When you think of risk-taking, what do you conjure up? Most of us right away think of something super precarious, like sky diving without instruction, driving down your neighborhood street thinking it is the autobahn, in other words, any reckless behavior that may end tragically. And yes, for good measure, let us include sauntering across the 405 interstate freeway.

In a recent episode, a professional Himalayan guide spoke of trekking the spectacular region of Nepal, and some people take the uncertain odyssey to the summit of Mt. Everest. Would you say this is a risky endeavor?

The truth be told,, risk-taking behavior is extremely subjective. Some professional skydiving instructors or professional stock car drivers repeatedly, from our point of view,  take these types of perilous activity regularly. But they are not reckless from the standpoint of having mastered the necessary skillset,  it is called calculated risks which tends to mitigate a potential negative outcome. However, allow me to be perfectly clear that I am by no means advocating risky behavior of any sort. But in this article I am emphasizing the perspective of enjoying life by taking risks that are not detrimental to others and to our own persona. Unfortunately, many of us are indecisive and struggle with finding our personal direction, making life changing decisions is out of the question, even when knowing it would be of benefit to oneself and family,, therefore, we tend to remain stuck in a rut in our comfort zone robbing ourselves developmentally.

Have you ever decided to do something and everything within you is screaming not to do it? That is precisely what I am referring to as a risk-taking decision, a calculated risk, it is much more than just taking a leap of faith. The word (calculated) carries the implied meaning of math, it all adds up, it makes sense, it is worth the effort of taking the risk and there is an implied (reward). Before I continue with my rambling, to circle around to the question whether climbing up to the summit of Mt. Everest is a risk or not, my guest said that out of 10 one life is lost in the process, and it is usually the Sherpa guide in efforts to protecting the inexperienced climber. This is horrible math, it does not add up, only in terms of egotism does  it make sense to me, it is a matter of pride on the part of the want-to-be mountaineer.

In my research as to who has been up to the summit of Mt. Everest the most is known as Kami Rita a Nepalese Sherpa. He is Not just  any mountaineer but holds the world-record for summiting Everest    24 successful times. The record shows that he always tries to make certain all his clients succeed to the top, but he says that you must draw a line somewhere,  once he realizes that a client will not do well, he immediately aborts the mission. In my personal view, this is still not a calculated risk in terms of so many variables that can and will go wrong when you consider that there are over 100 bodies that have not been recovered.

To find our deliberate direction, we must consider and examine our core values, assuming our principles are societally acceptable, and there is where we align our risks with our core beliefs, it becomes lucid, so get comfortable with the uncomfortable if we are to be rewarded. Cor values can be likened to a compass, it is the needle that points to your true north, it is the north star that ancient mariners depended on throughout the ages minimizing their risk in the open seas.

We must ask ourselves, with our core values in mind, what will give me a meaningful life,  what would fill me with passion and purpose, and then, take the calculated risk to realize it. Without taking calculated risks, regrettably, we would never have known what could have been. In fact, over the years, I have observed that risk takers are more satisfied in life than non-risktakers.

Of course, our core values vary from one person to another, there is no one size fits all, but if we give of ourselves to others, it is the ultimate reward as a risktaker.

Core values and your beliefs are the foundation of your home, without a base it falls apart. It is conducive to providing the groundwork for your actional calculated risks, your deliberate decisions, and how we continue in this granted life of ours.

From a secular side of things, you want to purchase your first home sometime this year but are afraid it may come with ongoing costly maintenance. and the economy being what it is, there is an apprehension of losing your job, not to mention the real estate industry taking a nosedive and losing property value.

Or you want to start a business and there is ambivalence about whether this is the right time. What if I invest all my time and energy into this business and begin falling short in other key areas of my life?

This is where we need to Think about the impact of each potential calculated risk. From personal experience, what has served me well is to have a plan B or C if necessary as a contingency, minimizing the loss or avoiding a loss altogether. This demands research on your part, a risk analysis determining the reward versus the risk. How do you do that?

Using the example of the 405 interstate freeway, strictly as an illustration, weighing the risk of casually walking across without incident and If I were offered one dollar or a million dollars to take the risk, would I do it? Obviously, the million-dollar reward is something to consider! How would my research and risk analysis come into play in this scenario?

Let me answer this question by asking you how many times have you been in those well-known infamous stands still traffic jams because of road construction or a roadblock for some reason? I am certain that the 405 interstate requires occasional maintenance, so I would research when the next scheduled maintenance that is going to occur, and proceed to plan to amble across without incident, of course, barring any potholes along the way that I might disappear in to. Can you see how careful planning and the implementation of strategy can reduce risk? If history has taught me anything, an opportunity can be found in the most unlikely places with nominal risk.

At this point, I am approaching 200 episodes on my show, and my takeaway from my professional guests on the spectrum of self-help topics, is that there are so many people out there that are not true with themselves, therefore, are struggling  even though they are successful by all appearance. Why is this the case?

The only extrapolation that I can offer, is that these poor folks out there are not living in alignment with their core values and beliefs, something is amiss, and they cannot find the answer, therefore, there is an exponential increase of transformational coaches of which has become an industry all onto itself addressing this issue.

If we do not understand our innate core values, internal conflict will continue, not being in tune with our inherent values makes us susceptible to violating them without realizing it. And this can lend itself to feelings of wrongdoing and guilt without even knowing why.

We will continue to go through the motions in life accomplishing our so-called goals feeling empty and unfulfilled.

My suggestion is to take the risk and try to emulate a person who you admire, someone that inspires you, someone that intrinsically fits you, and it will make a world of difference in your perspective in life.

If you take this innocuous risky step, especially in giving of yourself to others as a mentor in all respects, research has revealed that we are more able to tolerate chronic pain, it develops more self-discipline and concentration when working, social connections will be strengthened, and every engagement you involve yourself will have a high calculated degree of success.

I would say the reward is worth the risk!