• Melanie Koerperich

Risk: Is It Worthwhile? – How to Analyze The Real Cost

In business, as well as in life, the potential outcome of a risk can outweigh the risk itself.  The problem is determining which are worthwhile risks and which risks simply have a cost that is too high.  When I refer to cost I don’t necessarily mean in a monetary sense, either.  Yes, some risks may involve a monetary cost but others can have a more abstract cost, too.

Risk Cost vs. Satisfaction

When I was younger I was a daredevil.  No risk seemed too great.  I didn’t shy away from anything.  I was unflinching no matter what came my way.  It wasn’t until I was a mother and someone else’s livelihood was attached to my own that I started weighing the risk cost vs the satisfaction.

I remember the first family vacation we took after my daughter was born.  We were in South Dakota and we rented a pontoon boat for the afternoon.  After a while, we came upon a cliff.  Everyone was swimming to shore, climbing the rocks, and jumping from the cliff.  All my brothers and sisters decided we should jump from the cliff while I sat for the longest time looking at my 2-year-old daughter thinking “What if I dove in and hit my head on a rock?”

Risk Analysis

It wasn’t until that moment that I considered the cost associated with taking risks.  With any risk, you must put on your analytical game face and take a long hard look at the cost vs potential benefits and weigh them against the situation.  Is the dollar you spend on a lottery ticket for the chance to win $300 million worth the risk?  What if you only have $5 to your name?  It is a different story then, right?

Is it worth spending $200 in marketing expenses a month when there are so many forums that allow for free marketing (i.e. social media, blogging, etc.)?  What if you’re a one-man show and the $200 allows you more face time with actual clients and produces more revenue?  I can’t give you a hard rule to follow here, it’s tough.  But, the risk is an unavoidable part of life.

Is It Worth It?

If you get married, will it last forever or will you waste ten years of your life on something that will end in disaster?  It goes on and on with each decision we make there are associated costs and desired outcomes.  The question you need to ask yourself is “Is the risk worth it?”

So was the risk worth it for me on our family vacation? Yes! I did finally jump off the cliff but only because my mom called me a chicken.  I figured if she wasn’t worried, I was probably just overthinking it!

Looking for more great tips? Check out our other blogs here.

#satisfaction #Risks #riskanalysis #worthwhilerisks #benefit #riskcost #potential

0 views0 comments

Recent Posts

See All

This privacy policy discloses the privacy practices for www.milrichvirtualprofessionals.com. This privacy policy applies solely to information collected by this web site. It will notify you of the following:

  1. What personally identifiable information is collected from you through the web site, how it is used and with whom it may be shared.

  2. What choices are available to you regarding the use of your data.

  3. The security procedures in place to protect the misuse of your information.

  4. How you can correct any inaccuracies in the information.

Information Collection, Use, and Sharing 
We are the sole owners of the information collected on this site. We only have access to/collect information that you voluntarily give us via email or other direct contact from you. We will not sell or rent this information to anyone.

We will use your information to respond to you, regarding the reason you contacted us. We will not share your information with any third party outside of our organization, other than as necessary to fulfill your request, e.g. to ship an order.

Unless you ask us not to, we may contact you via email in the future to tell you about specials, new products or services, or changes to this privacy policy.

Your Access to and Control Over Information 
You may opt out of any future contacts from us at any time. You can do the following at any time by contacting us via the email address or phone number given on our website:

   • See what data we have about you, if any.

   • Change/correct any data we have about you.

   • Have us delete any data we have about you.

   • Express any concern you have about our use of your data.

 

Security 
We take precautions to protect your information. When you submit sensitive information via the website, your information is protected both online and offline.

Wherever we collect sensitive information (such as credit card data), that information is encrypted and transmitted to us in a secure way. You can verify this by looking for a closed lock icon at the bottom of your web browser, or looking for "https" at the beginning of the address of the web page.

While we use encryption to protect sensitive information transmitted online, we also protect your information offline. Only employees who need the information to perform a specific job (for example, billing or customer service) are granted access to personally identifiable information. The computers/servers in which we store personally identifiable information are kept in a secure environment.

Our Privacy Policy may change from time to time and all updates will be posted on this page.

If you feel that we are not abiding by this privacy policy, you should contact us immediately via email contact@milrichvirtualprofessionals.com

Orders 
We request information from you on our order form. To buy from us, you must provide contact information (like name and shipping address) and financial information (like credit card number, expiration date). This information is used for billing purposes and to fill your orders. If we have trouble processing an order, we'll use this information to contact you.

If you use cookies or other devices that track site visitors, insert a paragraph like this in your privacy policy: 

Links 
This web site contains links to other sites. Please be aware that we are not responsible for the content or privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of any other site that collects personally identifiable information.

Copyright © 2009 - 2020 Milrich Virtual Professionals LLC.
All Rights Reserved