Topic: Coping with Risk. - page 6. (Read 1354 times)

I don't know how you understand about online investment so that you start talking about such huge risks and then compare them with the risks of physical businesses managed by humans themselves. You need to know that every online investment is also managed by humans and usually it is the owner himself in a wallet that is well guarded, so even if there are bad things such as hacking.

I think this is just a disaster that can happen to anyone as long as their work is closely related to the internet, so every mistake always comes purely from the person himself and is a matter of risk. I think this is always present in all jobs so everyone just needs to understand it and try to be ready to deal with it if it happens in their work.

Technically it's reversible because you're invest in a centralized site, irreversible is different to full control.

Nah, if mismanagement is the major risk, I believe many businesses are successful because most businessmen are hard worker and high knowledge. It's mostly comes from external where you can't control.

Robbery, black magic, beggars, mafias, scammed by own employees, people burn your company etc, that makes you need to take unnecessary losses.

Risk exists in all activities specially when any financial activity involves to it. To run a business, one must take risks. Business with profit and loss. Risk must be addressed in all cases. It is impossible to say for sure which business you will do because in all areas people are making gains as well as losses in all areas. So when you want to run a physical business, you first need to know what the demand for a product is like in your local area, and also look at how your competitors are doing there. It depends on everyone's personal opinion which one you can do well in. I hope you will do well in all offline and online businesses if you manage your business wisely.

I think actually for the risk problem both of these things are risky and for the risk problem depends on each individual who controls and who runs it, maybe we already know that to run an investment or physical business requires us to take risks and only each person knows about how big or high the risk they can take. But if you are questioning the risk that cannot be avoided in the sense that it is not done intentionally by the people involved then maybe I will agree with you that the possibility of greater risk is in online investment because with the development of the technological world that has become increasingly modern, it allows many parties to try to find ways to benefit themselves at the expense of others or that means the possibility of hacking to take over investment assets is greater and usually if this happens then most likely the victim will lose all his money without a remainder and it is very difficult to achieve recovery.

And for the problem of physical businesses I understand that many competitors may be superior because the competition in the business world is quite tight but when it comes to physical businesses then maybe like you said that this is more often the result of mismanagement, it could be due to not having a qualified understanding or other things and if they go bankrupt then it doesn't mean they lose everything because surely at least there will still be some goods or products that can be utilized.

Venturing into something you have no experience, knowledge and no one to guide you will increase the risk you stand to face and your chances to fail or victim a victim of loss.

If you just choose a business to start and a location to establish the business, and you did not make proper enquiries about the business you are starting, the challenges involved and security situation of the place where you are establishing the business, so you can know the security measures to use, you have increased risk in your physical business and reduced your chances of profiting well. If it is online investment, and you are not aware of the risk, you have made it more risky for you.

A business person with more knowledge on physical investments will consider it less risky to online investment where he has no real idea, and likewise an online investor.

In fact, people who have a lot of assets will be more aggressive in expanding their business and because they have enough capital they can have more freedom in doing everything and of course people like that have a lot of experience so their percentage can take greater profits and they also understand about things that can minimize risks.

Trust in a business is quite difficult to gain, but there are many ways you can avoid bad experiences that have occurred.

Both bears a lot of risk if not properly managed. So, depending on which field of expertise you are into, then that should be the choice you should make.
Running a physical business requires thorough studies to lessen or to avoid the risks associated with it. One of the most challenging factor when building a business is how you should select the perfect location to maximize the opportunity of hitting your target market. Without enough knowledge in this field would only result to a higher risk. This same goes to when you are investing into something. Bitcoin, stocks, and other form of assets. Therefore the choices depends on how knowledgeable or expert you are whether investing your money to run a business or investing for an asset, but it would be great if you could do both, it's one way of diversifying your investments.

You will only be able to know which is more risky when you have done both and also the risk will really depend on the amount of money you use either for doing business offline or investing online such as buying Bitcoin, and both risks can be slightly minimized if we start with calculations being thorough, studying what can cause us to lose in both because that is one of the keys, even though we may suffer losses, it is not because we do not understand or have minimal knowledge about the business or investment we choose.
And if we can do both, why should we choose, especially if our finances support it, because by running both, it is the same as not putting all eggs in one basket or in other words, we are do diversifying.

I find it more risky to have a running online investment with high risk of not only hacking but also the irreversibility of transactions that could result in us losing all our asset. Physical businesses only major risk is mismanagement so it is more on human error which is the opposite of online investment operation.

There is no such thing as free money. Earning money always comes with a risk. Even though there are some "risk" free way of earning money, you aren't actually risk free. You have a regular job and earning a steady income from that job. But that doesn't mean you are risk free. There is a chance of you getting sacked. So there is the risk for you. You might find a work online, but there is a chance that the person who employed you might not pay and scam you.

A. You have more control over your risks and losses when you run a business physically (i am guessing you mean something like a store or a restaurant).

B. It is more riskier and depens on what you are investing on. But the higher risk you take, the more rewards you might earn, but in the long run you might end up with nothing.

For those who already have a lot of wealth at their disposal, they will no longer get tired of working because they have earned income from what they have invested and all they need to pay attention to is what field they will invest in to be able to achieve profits and not make mistakes in When choosing the type of investment they make, it is very important to have the knowledge and skills to be able to distinguish which investments are profitable or not.

If we have ever trusted someone else with the business we have but that person betrays us then it will be very difficult for us to entrust it to other people and

Without a doubt option A is the most risky out of the two options that you give, while investing is risky by itself and the risks we associate with an online activity are not small, at the same time there are many things you can do to reduce those risks and make them as small as possible.

But when it comes to a physical business you are severely limited about what you can do, as a great deal of factors are not under your control, and that alone makes running a regular business more risky than investing online.

indeed there are certain characteristics of people out there, some people just like their money working for them as an example are those angel investors that are funding various project and have intention of growing their capital through investing, indeed this might seem simple but finding project that worth investment is sometime really difficult that I don't think random people could pull of f despite having big capital to begin with but it really takes some skill to distinguish a good investment or not.
meanwhile the other that just only believe in himself for managing business otherwise he won't put a dime are the typical person that might have trust issue or having experienced being scammed in the past, fairly speaking, they are the one thats diligent in keeping the business alive but of course result will not necessarily like the expectation.

This is true, I know someone who have money to start up a business but he always sees himself as someone who don’t have all it takes to start up that business maybe this could be because of the kind of work that he do or because he just don’t like the stress of managing his own business, but if you bring investment ideas to him and can be able to convince him that the investment will bring in profit he will invest in them and just be expecting the reward base on how you guys agree on.

I have also seen someone whom don’t believe on anything that’s not being managed by him, like if not business that he is manage on his own he don’t risk his money to invest in anywhere he trust only but him self and he is certain of how much profit he makes from the business that he have been doing and he is okay with it.

All types of investments have their own individual risks, be it offline or online. So before deciding which way to chose, evaluate yourself first on what type of investment you’re more capable to manage and make it work. Know your level of knowledge and skills first, and if you see more potentials for you to succeed on online or offline investment, then focus on that.

However, everything can be learned if you follow the right process. If you have sufficient funds to invest in both, then why not focus on one only? It’s always better to have diversified investments, so that when one fails, the other one might eventually become successful.

Running an online business with high risk of getting hack is one of the problems online businesses are facing and when they are not equipped with the right tools to keep them from hackers, things might get wrong and things might crumble when the unfortunate happens. Many projects especially in cryptocurrency that don't have a strong team or safety tools in place we're not able to grow to the fullest because of the lack of appropriate work force to help safeguard the project from online and experienced hackers. Physical businesses have lower risk but can not be compared to online including the profits differences.

In this case both options are of course equally good and if it can be done in both, why not .
All forms of behavior that we do of course have risks that we must be ready to bear in the end as for talking about investment IMO this is a need for the future level so this is not a thing that requires us to hope more for the short term because in the end it is about the longer term and to support that then we need a business or jobs to get income to support our daily needs.

We know that investment wont work if we don't have income, so you have to start by earning money first and have at least a business or job to do that.
As for risk,we will not be able to rise if we continue to avoid it so we must be able to survive in risk conditions that are definitely already there.

This isn't really a sensible comparison. A business produces something, it turns a good or service into revenue and ideally a profit. People tend to run a business if they can see a profit in it, whether that is going into a steady mainstream company like a barber, electrician or dentist. Optionally you have high risk businesses that try to be pioneers in new areas which may have zero competition or heavy competition, like marketing or trying to get in early on a new product that is hyped up at the moment - think fidget spinners. Whereas buying bitcoin is doing nothing of the sort, you are simply buying with the belief that you will one day be able to sell it at a higher price, when none of us really have an idea which will it will go, continue upwards or get displaced by something that causes it to trend downwards.

Having risk is part of economy, no matter what you do, investing, saving, a business, starting some new product, even gold. It doesn't matter what you are doing with your money, you will always end up with a loss and that should always be the thing that you should avoid the most. I understand that it is going to be a tough one, and you will not be really doing much with it, but you should make sure that things are fine in the end.

I believe that we are going to be doing fine in the end one way or another. Life is not fair to everyone, and that means you are not going to get what you want or what you think you deserve. This should be the most important part, and I believe it will definitely be a problem for most people. This is why it is better to just focus on what you could do with what you have. Manage your risk, keep it at a decent level.

Every business has equal risks involved and equal opportunities of making gains, what is there needed is your passion. You ought to follow your passion, be it offline or online business. You can succeed in it and at the same time, you might fail, but where passion and desire lie has more possibility of success than failure. You can combine both of them if you have the ability. But never go into a business because you feel there are less risks involved in it, NO. get involved because that is what you really desire doing and with time, you'll learn the secrets and increase your efficiency in the business.