The Necessity of Taking Calculated Risks

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In a capitalistic society, risk is often associated with reward. In many instances, it takes risk to garner the large profits and wealth that many entrepreneurs amass over time. It is through this risk that society overall benefits. The vast ecosystem embedded within a capitalistic society requires innovations to better compete in a global environment. Technology, energy, and banking all require new and unique products to cater to a growing international dynamic. Inherently, these activities can be risky. New product launches, for instance, must cater to changing consumer sentiments. The forecast of these changes could have been in error resulting in a monetary loss as oppose to a profit for the company. By taking the risk however society improves by having new and innovative products available when they are demanded. It is therefore my contention that risk, when controlled, is good for society overall. There are however, negative aspects of excessive risk taking as it relates to society at large. One need not look any further than the recent economic catastrophe of 2008. In this instance, excessive risk ultimately jeopardized individual's institutions as well as society at large. However, it is through risk and investment that society strengthens its overall quality of life (Damodaran, 2003). Risk, when used appropriately, is good for society however. Risk taking is needed to help enhance the overall quality of life for society. It is because of risk that the world now
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