How much risk?


In a Burnet News Club session we have done recently, we looked at how much risk in a game (what amount of tokens/money) we place on the line to be kept or taken. My group usually stayed with about four tokens, making us have a safe but not very valuable amount of money to be taken or given. We firstly considered it being a good idea but after watching a video and watching other groups predict their numbers, we thought again.

How to play the game.

You had 20 tokens. You could chose what number would be rolled in the dice, making a certain number of guesses. If you guessed more numbers, if one was right you would earn less money/tokens. If you didn't guess many, but got one right then you would win LOADS. However, if you got it wrong, you would loose all the tokens you out on the line. The team with the most counters at the end wins.

We should risk things more often ( playing a game or reality)

If we risk more, we get more. Receiving 10 tokens is quite different from receiving one... all because of RISK! If you always play safe, your not going to get very much, are you? RISK is what gets people out of situations when they need to trust the bank. RISK is what you get money out of, not playing safe. RISK is how you make business, not always keeping it for yourself just in case. If we didn't risk things, we wouldn't get much money. What I'm trying saying is that there's not always a safe option. What would you do then? You can't live your life avoiding anything that could go wrong. I'm not saying you shouldn't be cautious, otherwise that is just dangerous, but you should step just SLIGHTLY out of your comfort zone. Try this...

You're running a bath and using lots of warm water to soothe you after a long day at school/work. After turning it off, you decide to get in. Then you have doubts. If you get in and it's to hot, you will get burnt and hurt. But still, a lovely warm bath after a long day on your feet is very welcome. What do you do?

This is a very mild example that I'm sure we all face from time to time. The point is, that the end effect is much better then being cautious and what do you get? A COLD BATH! To be perfectly honest, that's not exactly what I want after a long day. We should take risks!!!

No, playing in the safe side is MUCH better.

The whole thing that started the financial crisis was bankers taking big risks... and what happend? In the BNC video it says they think it cost all tax payers nearly £300 each. (Was it? I'm not completely sure - it was a little while ago.) That never would have happened if bankers hadn't been bribed and taken lots of risks with people who couldn't pay it back. You see people taking risks and the effects hitting them negatively all over the place (especially in London!) Back to the bath issue, if you take that risk you might get a sore toe. I know right! Maybe not the worst thing that could happen but if that was in a more serious situation then it would be MUCH worse than a sore toe. I'm not saying that isn't terrible though, after many first hand experiences, toes in boiling hot water a VERY painful. Anyway, as much as I like talking about sore toes are, the point is that it is NOT worth taking BIG risks when things will PROBABLY won't (I'm not saying that they definitely won't) pay off.

My opinion.

Although SOME risks are important, I think that things like the financial crisis are not worth risking for a small amount of extra money at to be earnt. If course, in my silly example before, getting a sore toe isn't too bad and that risk is worth taking. But, really, we can't afford another financial crisis and bankers have to be careful. I was quite confused (when in our BNC group we played the game) when people laid ten counters on the line, making only one guess, as that group weren't in MUCH danger, but they didn't really need it. (Feeling it was a bit rude I didn't comment) Therefore I think that risks aren't worth taking if they will just end up being expensive.

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