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High Risk Opportunity - Definition

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High risk opportunity is a term meant to describe an extraordinary opportunity that also involves somewhat more risk.  In the decision space described in Figure 2 in the Rewards page, the high risk opportunity region is the upper right quadrant II.  These decisions reflect choices that have clearly higher than normal opportunity to gain high rewards or but also somewhat more than normal risks.  Most good decision alternatives lie along the diagonal line of Figure 2 which define choices whose rewards are proportionate to the risks.  The diagonal line defines the amount of reward that a decision maker should demand given the risks of implementing the investment (time, energy, and resources).  This website call this diagonal line through the rewards and risks matrix the "neutral line".  Any opportunity (decision choices) on or above this line represents a good, acceptable decision choice.  The amount of reward offered relative to the inherent risks (of execution) is considered favorable, and a rational, risk-neutral decision maker would make the choice under normal circumstances (if they had the resources to implement the decision and the amount of resources required is only a small fraction of their total wealth).  In other words, selecting choices that on or above the neutral line is prudent, because the reward-to-risk ratio is favorable.   A person who is risk adverse may place limits on themselves as to how far out on the risk axis they are willing to go (i.e. how much risk they can safely handle).  However, opportunities (decision choices) that lie far above the neutral line into the blue zone should be given serious consideration, because not to many decision choices are found there.  These high-opportunity, low-risk decision choices are hard to find, but they do exist and often require a trained eye to find them.    

While few opportunities (decision choices) lie in the blue zone, there are many decision choices whose reward to risk balance fall below the neutral line into the red zone. Exactly where on the reward and risk matrix the decision choices fall will not be readily known until the decision-maker evaluates the choices to quantify both the risks and the opportunities.  Most people see the opportunities but fail to see  the risks.   It is worth the extra time to analyze all decision choices to spot the risks, both the obvious and the latent one.  Only by assessing many decision choices simultaneously using the risk & opportunity scale (see web page) can the decision maker discriminate the better opportunities.   A risk and opportunity measurement scale is one way of filtering out the better opportunities from among any group of choices currently under deliberation.   Attention should be directed to those decision choices that lie above the neutral line and in particular those in quadrants I and II as they represent the high opportunities.    Any choices that offer the reverse, low opportunities and high risks, should be avoided at all costs.  But first, you must investigate to 

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