Insane Risks Vs Calculated Risks

Darren Hardy has a wonderful post
on the difference between
insane risk and calculated risk.

I love Richard Branson’s thoughts on risk.
Outsiders perceive the Rebel Billionaire
as taking crazy risks
when in reality, he is a pro at calculated risks.

“First of all I never risk the main business
for the sake of a new venture.
That is why each Virgin brand
is a separate business.
No new business will ever put
any existing business in jeopardy
—that is my first discipline.
Then in each new risk
I build in an out.

When I started Virgin Airlines
I started by buying only one used 747 from Boeing.
Part of my contract was that after a year
if it didn’t work out,
they would agree to buy back
the plane from me.
That ensured if it didn’t work out
I wasn’t really risking anything,
just the time to see if I could make it work.”

Calculated risks are good
and necessary for success.
Learn how to manage risk properly.