Carl, an experienced rock climber, shares gripping insights on risk management from his thrilling adventures. He recounts a harrowing story that emphasizes the difference between 'ignorant risk,' where consequences remain unknown, and 'honest risk,' where the dangers are clear but still embraced. This exploration prompts listeners to reflect on their own decision-making process regarding risks. How can we become more informed about the risks we take in life? Carl's candid reflections resonate deeply with anyone navigating uncertainty.
Engaging in ignorant risk involves taking actions without understanding potential consequences, highlighting the importance of knowledge and awareness in risk management.
Honest risk involves making informed decisions with an understanding of potential outcomes, requiring self-awareness and reflection on one's skills and overconfidence.
Deep dives
Understanding Ignorant Risk
Ignorant risk refers to engaging in activities without fully understanding the potential consequences, often stemming from a lack of knowledge or experience. The speaker shares a personal anecdote from their rock climbing days, where both they and a climbing partner made a critical mistake that led to a serious injury. This incident highlights how risk can often go unnoticed until a consequence occurs, emphasizing the need to consider what information might be missing in dangerous situations. To manage ignorant risk, the speaker suggests actively questioning what might not be considered, fostering a mindset that seeks to uncover unknown hazards before engaging in risky activities.
Navigating Honest Risk
Honest risk is characterized by an awareness of the consequences of an action, alongside a decision to proceed regardless. The speaker reflects on experiences with skilled individuals, like extreme skiers, who understand the risks they take and choose to engage in them despite the dangers involved. Notably, the example of climber Alex Honnold is provided, who demonstrates this concept through his highly skilled free soloing while being mindful of the risks, aided by input from knowledgeable peers. Navigating honest risk requires significant self-awareness, skill, and honest reflection about the potential for overconfidence, making it a complex aspect of risk management.
Carl shares a story from his rock climbing days, where he and a friend made mistakes that led to a serious accident. He reflects on two types of risk: "ignorant risk," where you don’t know the consequences, and "honest risk," where you understand the consequences but choose to proceed anyway. What risks are you taking without fully knowing the consequences? How can you ensure that your risks are more informed and intentional?
Want more from Carl? Get the shortest, most impactful weekly email on the web! Sign up for the Weekly Letter from Certified Financial Planner™ and New York Times columnist Carl Richards here: https://behaviorgap.com/
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