Ten Key Concepts For Promoting
Appropriate Risk-Taking



1. Risk is “uncertainty that matters” - different things matter to different people to a different extent in different circumstances.

2. Risk includes both downside (threats) and upside (opportunities) - both need to be addressed proactively, to minimise threats and maximise opportunities.

3. “Zero risk” is unachievable and undesirable - all aspects of life involve risk, and require appropriate risk-taking.

4. Risk has two sides - uncertainty can be expressed as “probability”, and how much it matters is called “impact”.

5. Risk management requires understanding of both probability and impact - if the uncertain event is very unlikely or it would have negligible effect, it requires less attention.

6. Risk management is affected by perception - how uncertain is it? How much does it matter?.

7. Perception is affected by many factors - including conscious rational assessment, subconscious sources of bias, and affective inner emotions.

8. Risk attitude is “chosen response to uncertainty that matters, driven by perception” - individuals and groups adopt risk attitudes either subconsciously or consciously, ranging from risk-averse to risk-seeking.

9. Risk attitude can be managed consciously - emotionally literate individuals and groups respond instead of reacting, understanding which risk attitude best meets the specific needs of the situation.

10. Managed risk attitudes promote effective risk management with appropriate risk-taking .