Some would say risk aversion is all about self-preservation. Stopping us from touching a hot stove, standing near a cliff, or “talking back” to our parents. It’s a built-in defense mechanism that probably saved us many times.
But when it comes to risk and success the two are synonymous. In other words, success never comes from playing it safe. Like the saying goes – The greater the risk the greater the reward. Before we answer the question, Is aversion to risk a success killer, let’s define what this means.
What is Risk Aversion?
First, risk aversion is often applied in the financial realm. Investopedia defines it as “the investor who chooses the preservation of capital over the potential for a higher-than–average return.”
In ethics, Risk Aversion is defined as – “to describe a concept where an individual is faced with uncertainty and they must decide how they will react to that uncertainty. Those who do not like risks are known as a risk-averse individual.”
For the sake of this article, let’s describe it as a tendency to shy away from taking any action because the risks seem too great.
Signs we’ve become risk-averse.
- Fallen into the habit of considering every action in light of potential risks.
- Avoiding activities, we used to enjoy based solely on the perceived risk factor.
- Referring to experts and research before we make common decisions.
- We prefer isolation over interaction, especially if there’s any risk involved.
- Frequently regretting past actions especially when our inaction caused loss or limited reward (like not investing in Amazon when it was only double digits).
5 ways to move past our aversion to risk
1. Create a new daily routine.
Many times, our aversion to risk changes our habits and routines over time. Or when things like a pandemic hit and were forced to build new routines. If you’re stuck, chances are your habits and routines put you there. Take a deep look into your current habits and start to make small incremental changes that push you out of your comfort zone. Finding success often begins with building routines that open new opportunities.
2. Stop whining and complaining.
It’s easy to fall into self-pity. Blaming others for our current state. In a free society, it’s our own actions and decisions that determine our success or failure. So, stop looking outward and start looking inward. Every time we feel the urge to complain, try to find something we can be thankful for. And focus on that. I say, slay the negative with the positive. It’s time to stop complaining and move on. Its easier to face risk with a positive attitude. Since fear is often the greatest enemy of success.
3. Find your most positive friends and ask for help.
It’s hard to ask for a hand up when we’re in self-preservation mode. But there is always someone to help. So, start contacting people you know can help. And stop spending time with those enabling your current inability to build success.
4. Stop hiding in misery and take the first step.
Get outside whatever hole you put yourself in. Go out and explore. Enjoy nature. Take a road trip. Exercise in the fresh air. Go out and have a picnic with close friends. Join a social club. Do something, anything that gets you out of the rut you find yourself in. Then incrementally take chances and increase your exposure to the risks you’ve been avoiding.
5. Make a plan to recoup losses.
Many people suffer financial, health, social, and mental hardships over time. Recouping these losses will help us find success elsewhere. So, deal with those negative thoughts and emotions stopping you from initiating action. Start by identifying the ones that cause the most grief and begin there. Set some goals. Check out some YouTube videos. Buy a book or join a club that can help direct us to renew our losses. Or check out our Youtube Channels 10 Commandments of Success.
A story from my own life
As a young child, I was big, loud, and hyperactive. I had so much energy, I banged my head up and down on my pillow until I fell asleep every night. I also talked quickly and had a bad speech impediment. This meant no one could understand me. Nor hardly put up with me.
In the late 1960s, schools had no special programs for children such as me. So, in every classroom, the teacher gave me two desks. One in the class with everyone else. And then a second desk in the corner or hallway or closet or next to the principal’s office. So basically, I spent half my time in class and the other in the closet, hallway, or next to the principal’s office. One teacher often sent me outside for what he called “special recess”.
To be honest, I absolutely hated going to school. It’s not easy being different. And when kids know you have a desk in a closet, they will be merciless.
Learning to shy away from risk
After a while, doing anything risky, like talking in class or doing anything that brought unwanted attention was eventually squelched. So, by middle school, I basically drew into myself by reading books or drawing in the back of the classroom.
Over time, I let my fears take control of my life. I would take as few risks as possible. Knowing that most things usually ended in my humiliation. Eventually, I was able to control my hyperactivity by channeling it into another purpose – making money.
A way out
So, at the ripe age of 12, I started to focus on working. By the end of high school, I worked delivering papers, managing concession stands, doing landscaping, working at a large hardware store, and even spent a summer working for the Youth Conservation Corps. Which meant I was able to save enough money to finance my own college education.
So, I found a college 1,000 miles away and at 17 left home for good. Being independent, living on your own, and facing risk head-on is a good way of dissolving fear. One learns to accept more risk when it’s part of survival. Accepting risk and facing my fears, has brought freedom my younger self thought impossible.
Great things
I believe great things require great action. Nothing monumental was ever accomplished without facing and conquering risks. Risk is inherent in life. Ask anyone who learned to ride a bike, drive a car, or met their In-laws.
Think about all your accomplishments. Did they come easy? Handed to you on a silver platter? Do great musicians, athletes, entertainers, professors et.al simply decide one day that by tomorrow they would be great?
No. Nada. No Way. Taking risks is all part of the reward. And may just lead to failure. But the good news is failure is one of the best ways to learn. Knowing what not to do, sometimes helps us learn what we need to do.
Since I broke away from my fears, I’ve found success as a parent, entrepreneur, writer, artist, pastor, professor, and avid world traveler. If you’re still reading this, I hope you too have such a list. Or plan to do so.
Finally, Aversion to Risk a Success Killer?
In my view, our aversion to risk is the greatest hindrance to finding success. But sometimes we have to decide for ourselves if the reward outweighs the risk. Post your thoughts below.