Most people prefer avoiding risk, all else being equal. However, taking greater risks tends to lead to greater rewards. How much risk are you willing to accept for a chance or opportunity to earn $100? $1,000? $10,000? Does it make a difference to you what the odds are of earning the reward? Does it make a difference if you are putting cold hard cash on the line or just your time and/or non-cash resources? People’s tolerance for risk varies and it is important to understand what it is, especially when multiple people within an organization are making decisions on a regular basis.
Learn more about how to identify your risk preference and its importance in building a successful agriculture operation in this Center for Agricultural Profitability article.
