Good Risk and Bad Risk

Bruce Tate writes about this in his book “From Java to Ruby“. But what does this mean?

If you are running projects or are managing a team/company (for that matter), you have been told to manage risk(s). Chances are good that you also have been told that risks should be avoided or at least mitigated. Therefore risks are bad, aren’t they?

Well, there is an economic saying: “stagnation mean regression”. This means you need to progress and you need to do new things to do so.  So you go for chances. This in turn implies that you take some risks in order to gain (economic advantage). In general you take the more risk(s) the higher your gain may be (unless you run into a rare lucky case).

So taking risk(s) is good and important after all?

It sure is. However you need to know what you do, you should take those risks intentionally (instead of accidentally).

That is what risk management is all about.