Risk Mitigation – Learning from the experiences

Previously I wrote about “Is Experience Important?” and “My Car Selection Experience”. The following is the conclusion of “The learning from the experiences”.

We can reduce the car accident probability as low as possible by our own effort. In English, this kind of processes is called “Risk Mitigation”.

From the driving safety point of view, to improve your cornering skill or to polish braking skill can be called “Active safety improvement measure”. On the other hand, to buy a car that has superior braking or crash test performance may be a “Passive safety improvement measure”

Working hard to improve one’s competency and to earn more money is an active risk mitigation method. To exchange the earned money with real estate or precious metal such as gold is a passive risk mitigation method. To take healthy and nutrition balanced food is an active safety improvement, and to buy health/life insurances is a passive safety improvement.

All the people who made their life successful or minimized failures are consummators of risk mitigation method. They are very skillful to make balance between active and passive risk mitigations. And this skill is nothing a gift from God. To analyze the subjects, make them linked (connections), and logically and systematically layout them are depending on how much he/she practiced to do so, i.e. it is highly up to their personal ability.

When I asked somebody “how about your risk mitigation plan in this business case?” and get an immediate response that “My active risk mitigation plan is A and B, and my passive ones are C and D”, I would be very much impressed and say “In this person’s mind, the risk mitigation methodology is well organized and systematic. An intelligent person he/she is!” How about you?

I am poor in passive safety measures such as real estate investment. If I were good, I may already be a billionaire! But I think I could do so-so in active measures.

The story of car accident through risk mitigation represents that the speed and level of people’s growth might be widely differed even they share the same amount of experiences and information available. This is because of the difference in their learning attitude before and after the experience.

In summary, the habit of systemization through the information collection, analysis, and logic creation will improve our power of risk mitigation; that will ultimately enrich your life and business career in the future.