Risk

Risk is another reason people do not act on their dreams. Wikipedia describes risk as a concept that denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or future event. Risk is the possibility of an event occurring that will have an impact on the achievement of objectives. Risk is measured in terms of impact and likelihood.

This is what stops people in their tracks. They look at the possibilities and only see the challenges. They quickly determine that it is safer to remain where they are at. This is their comfort zone. The longer they stay there the more it becomes a "rut". The only difference between a rut and the grave is the depth.

The positive side of risk is the rewards. What are the possible gains? Is it worth the time, effort, resources in exchange for the rewards? Everything ultimately is an exchange of some kind. Time for relationships, money for return on investment (ROI), good deeds for satisfaction or fulfillment, effort for completion of task, belief for commitment, etc. Is the endeavor worth the result?

Risk assessment is a vital component to building wealth. Not all investments are worth the resources expended to achieve the result. The process to determine this is called due diligence. The more that is learned about the key components of the endeavor, investment, management, etc., the more clear the risk is defined to determine the worthiness. Many do not know where to start to obtain this information, so they automatically determine it is too risky. These are obstacles and limitations that prevent people from building wealth and achieving their dreams.

There is much more on this topic and it will be covered in future posts.

We want each of you to show this same diligence to the very end, in order to make your hope sure. We do not want you to become lazy, but to imitate those who through faith and patience inherit what has been promised. Hebrews 6:11,12

P.S. If anyone is looking to contact me, the email link in the profile will not work. Microsoft Outlook will not send any emails to non standard addresses such as panama-vo.com. You must type in the address from inside your email provider.