Understanding risk is fundamental from "summary" of BIGGEST BLUFF by MARIA. KONNIKOVA
Understanding risk is fundamental. It's not just about knowing that risk exists; it's also about knowing how to assess it accurately. Just because something is risky doesn't mean it's a bad decision, and just because something is safe doesn't mean it's a good decision. Risk is inherent in everything we do, from crossing the street to investing in the stock market. Without understanding risk, we can't make informed decisions. Risk is not a static concept; it's dynamic and ever-changing. Our perception of risk can be influenced by many factors, including our emotions, biases, and past experiences. Understanding risk requires us to be aware of these influences and to take steps to mitigate their impact. It's not enough to rely on intuition or gut feelings when assessing risk; we need to use evidence and reason to m...
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