Risk Management
Words I Like - “Pick a conservative line, and play it aggressively.” -Tiger Woods
Outlier Mat Minute: Risk Management
About a week ago, I wrote this newsletter on interconnectedness. I have been playing with these ideas and how they relate to risk management. Here is the process I am going through for developing a sense of how to manage risk effectively:
Step 1 - Identify the worst case scenario: First, figure out what the worst thing that could happen is. We want to avoid these worst case scenarios at all costs, and the first step is to identify them.
In jiu jitsu, this could be getting submitted.
In golf, it could be hitting it in the water.
In personal finance, it could be filing for bankruptcy.
Step 2 - Key Indicators: Next, notice the warning signs. These are signals that tell you you're heading toward trouble. For example, wrestler Kyle Dake uses his shoulder position as a warning sign. If his shoulder isn’t in the right place, he changes plans right away.
Step 3 - Be aggressive: Once you know the worst case scenario and the warning signs, you can be bold and confident in your actions.
As long as the key indicator of shoulder position is in place, Kyle is aggressive in finishing the single leg takedown.
As promised, jiu-jitsu insights in under 1 minute!
P.S. I will be sharing how I have been using this process in my class recently in the next couple newsletters. Stay tuned!