A Methodology to Classify Risk
by David G. Munro and Claudia Zeisberger
To progress, mankind must take risk. By reaching just beyond our capacity, we build new businesses, solve seemingly insurmountable problems, and come up with astounding inventions.
“Only those who will risk going too far can possibly find out how far one can go.” T.S. Eliot
But we often do an abysmal job of weighing the cost vs. the benefit of a risk. Large or indeterminate risks are frequently assumed for negligible gains if the risk is perceived as “unlikely”. Tiny risks with the potential to yield significant gains are sometimes avoided just because the risks are so visible.
“I don’t think much about risk. I just do what I want to do. If you gotta go, you gotta go.” Lillian Carter