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Risk Versus Rewards, Essay Example

Pages: 1

Words: 370

Essay

The amount of risk involved in a project does not necessarily guarantee a better result or greater satisfaction. Even if the risk is worth the greater outcome objectively, the satisfaction with the result is completely subjective. For some, the adrenaline rush involved with taking a risk is part of the fun. But for others, the stress that the outcome may be detrimental can negate any positive effect of the potential payoff.

Taking higher risks is often rewarded in our society. One arena where a higher risk involves a greater reward is the gambling industry. Players who gamble more money at games where the stakes are higher have a greater chance of increased winnings. Certain tables and games require a minimum bet for players to be included. Gamblers may have the opportunity to win a lot more money playing high stakes Poker or Black Jack as opposed to playing slot machines. However, players can still win a lot of money at the slot machines and for those who find risk stressful, they may enjoy the results of their smaller winnings more so than if they would have won more at a more intense game.

Taking risks can be rewarded in business and investing as well. If people invest in a smaller company with great potential, there is a high amount of risk if that company does not succeed. However, if the company is successful, investors have a greater chance of earning more rather than if they had invested in a more reliable and popular company. But for those who do not enjoy risk-taking, they may be just as happy earning a smaller amount as opposed to a larger sum of money. The satisfaction in earning more may not be worth the stress of wondering if the small company will succeed.

While objectively, the potential outcome for success may appear greater when taking a high risk, the satisfaction attained is completely personal. Some avoid risks out of fear, but others avoid risks simply because they do not enjoy the adrenaline. And while there may be greater opportunity to gain more with taking a risk, the results may not be as desired and the stress may not be worth it even if the outcome is positive.

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