Risk Based Decision Making - What's in it for Me!
Everyday we are faced with making decisions that could, and often do, change the outcome of our lives. Most times in very small ways. So much so we don't even give it a second thought.
But there are those times when the quick decision we make can change, in a dramatic way, the direction we go in life.
We generally make these quick decisions that have risk attached to them, based on our life experiences. Sometimes it is from something we heard or read about. Then there are those times it is based on fear. Fear is a huge motivator.
If we dig a little deeper, we find out that our fear is also based on either, our life experiences, something we heard, or something we read.
An example of this might be to ask yourself why you don't stop for someone that is hitchhiking.
My guess is that most of us have heard or read about the risk involved in picking up a hitchhiker in today's world.
Do we ever think about confirming this by checking the statistics? Probably not. As a matter of fact I tried to find some statistics on hitchhiking crime and was unsuccessful. I'm sure there is some somewhere, but I gave up looking. That most likely means it is very low.
We just trust the information because it is convenient to do so, and drive by them all the while thinking to ourselves how dangerous it would be to pick them up.
You see there is not much for us to gain by stopping and picking them up, so we don't. Why risk it!
This is a very simple version of risk based decision making.
Reverse that and put yourself in a position where you need the ride because you broke down.
Is it just as dangerous to be picked up? Probably, but our motivation is different now. We will benefit from it, so the risk becomes more balanced.
The need to get somewhere for help to fix your vehicle out weighs the risk involved in getting picked up by someone that might harm us.
The decision becomes even more lopsided if the temperature is very cold, or you are a great distance from help.
You get the picture.
So when we think about risk based decision making we need to think about how it will affect us personally. What am I risking?
I think that the true hero's in life are those that bypass the "What's in it for me?" question and just do it.
Whatever "It" is!
They don't stop and weigh the risk. They only think of the immediate need of others. If they thought about the risk, they most likely wouldn't be Hero's!
In business we should be looking more at “What's in it for the greater good” than “What's in it for Me”!