What Is The Impact Of Risk Behaviour?

Risk behavior, or risky behavior, could have a number of effects; some of the most probable are described below. Risk behavior involves making a decision in which the outcome is unsure. Generally, the outcome of such as decision could either be positive or negative. If it is positive, the risk taker is awarded for taking the risk; if it is negative; they face the consequences of displaying risk behavior. Often, risk behavior is an essential part of something. For instance, risks are often taken when playing board games or investing in the stock market. If these risks don't pay off, the worst possible scenario is not unthinkable. At other times, a risk should never be considered: For example, where the safety of yourself or others is being put at risk.

• Potential gains and losses

The most prominent impact of risk behavior is in the outcome. When a risk is taken, either a gain or loss will be produced. This is the whole idea of taking a risk; the risk taker does so in the hope that they will be rewarded for possibly anticipating a loss with a final reward. Such is the nature of risk taking.

• Planning

One negative effect of risk taking is the impact it has on planning. Risk behavior does not allow for effective planning, as the future consequences of a risk are not immediately known. In some cases in may be necessary to outline a number of courses of action, which should be taken if either risk outcome becomes apparent. However, this is inefficient; it could cost a company extra cash and encourage investors to avoid the company. This is because investors like to know they are set to receive stable returns on their money. Very few will be willing to risk large amounts of money themselves when making an investment choice.