Risk in finance, is the probability that an actual return on an investment will be lower than the expected return. It is divided into the following categories like operational risk, business risk, and financial risk. Risk taker is an individual or business that tends to behave in a way that can potentially cause physical harm or financial loss, but might also present an opportunity for a rewarding outcome. Most business types that thrive on innovation will encourage a risk taker mentality among management to help support the creative process in other staff members.
So, we can say that open risk taker is an individual that willing to take opportunity in pursuing its business whether he or she know there might be some circumstances or significant challenge to having a loss. In the other word, it can be someone who risks everything in the hope of achievement or accepts greater potential for loss in decisions and tolerates uncertainty. So to be a successful entrepreneur, he or she need to be an open risk-taker and must know how to deal with corresponding risk in future.
‘High risk, high return’. Someone who is willing to deal with high risk business will have high probability chances to have high return. It is because, an investment that generates high return usually have high level of risk. An open risk taker will cause someone to become more creative. When we put ourselves out on a limb, with a no-excuse approach, our natural problem-solving skills kick in and we are open to new ideas and are willing to try something new. Then, open risk taker trait also will lead someone to opens up to new challenge and opportunities. Instead of fighting to stay safe, we are needed to welcome new opportunities in order to expand or growth the business. It will built self-confidence and self-respect, empowering to feel stronger and more confident in taking on new opportunities. When we are open to new challenges, we can position ourselves to profit a whole lot more than just staying the same.
Tan Sri Dr. Tony Fernandes, who introduced the first budget no-frills airline, AirAsia, to Malaysians with the tagline "Now everyone can fly"
Tan Sri Dr. Tony Fernandes have heightened expectations when he has goals that can be unrealistic and unattainable to some, but which the open risk taker feels very confident will occur. He felt the drive to start his own airline business. He left his job as Warner Music executive in Malaysia and South East Asian regional vice president for Warner Music, in order to pursue his dream of starting a budget no-frills airline.
The next trait is that most risk takers like to gamble against the odds or risk everything. If someone tells them it is not possible, they automatically will try to complete the task. They told him that his action was a silly dream and it was possible to achieve since Air Asia was heavily indebted subsidiary of the Malaysian government-owned conglomerate, DRB-Hicom. He quickly dismissed their view and forged ahead with his risky vision by scarified what he had at that time. He mortgaged his home and used his personal savings to acquire the company, comprising two Boeing 737-300 jet aircraft and debts of US$11 million (RM40 million), for one ringgit (about 26 US cents).
An entrepreneurship who embraces change looks forward to a constant flux of new information and is always trying for improvements. Fernandes embrace to change and make improvement in his business by started a hotel chain, Tune Hotels, based on no-frills concept. He is barely to make a changes in his business area in order to maintain his business growth and sustainability.
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