Risk and Reward

Risk and Reward

By Rajesh Setty on Thu 04 Sep 2008, 4:00 AM – 3 Comments

The typical rule is that higher the risk, higher is the reward.

It seems like people know this.

And many people say that they are willing to take the higher risk to get the higher reward.

However, lots of people will opt for conservative approach in terms of “risk tolerance” but still expect a higher reward.

The sad part is a large majority of people want higher rewards with almost no risk however odd it may sound.

At all levels, I think the probability of success is same.

In one case (high risk, high reward), small percentage of people win just because it is “high risk” and one thing going wrong may derail the whole project. Brilliant strategy and great execution by a superb team may provide a big win.

In the other case of fantasy world (very low risk, high reward) one may still win because there are always the case of lottery winners.

In both cases, media will scoop up the news and report it as if this is common – almost saying that “if they can do it, you can too”. In reality, the fact that media picked this up shows that it is uncommon – meaning “if they can do it, you may not be able to”

The big difference though, in the first case you, even when you fail, you will BECOME something that you will be proud of later.

All the best!!!


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3 Comments so far, Add Yours

Entrepreneurs, Ideas, Sales and Innovation| Today’s Top Post | Dimarkin  on September 4th, 2008

[…] Risk and Reward: The typical rule is that higher the risk, higher is the reward. It seems like people know this. […]

Prashant  on September 7th, 2008


Like those who join startups to accelerate their careers and bank balances, but then complain that the risks are too high.

At the end of the day, most people are blinded by the potential for high rewards, and never really question their own risk aversity until its too late.

Javier Rincon  on September 14th, 2008

On the contrary, I don’t believe that the chances of succeeding are the same within all three. The reason for this is that I believe you have not taken into account the fact that some people can blend great talent and great work together. I believe that is the recipe for success. And even so, great work will lead you much further than probably thought.


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