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Risk vs Risky

 

Every person who is doing job says very easily, I do not want to start a business because it is risky. So, he gives up to start a business and never invest in it because he fears the loss of his invested capital. Actually it is his financial ignorance. Business is not risky. It has only risk if you do not know to manage a successful business. 

Ok, here are explaining detail of differences between risk and risky on some basis

1. Employee and Businessman

Risky

An employee do not start a business because he thinks business is risky.

Risk

Businessman knows the business. He knows how to manage it. He knows it has risk which has manage by gaining financial knowledge.

2. Financial Knowledge 

Risky

An employee does not have financial knowledge because he does not do any efforts for getting learning. 

Risk

Businessman learns daily financial things. So, he has financial knowledge. 

3. Ignorance 

Risky

Employee deems liability as his assets because he has the ignorance of accurate definition of liability and asset. Due to ignorance. He invest in risky investments which withdraw his money from his pocket. 

Risk

Businessman never withdraw money from his pocket on the name of risky investment. He takes risk in business which gives money in his pocket as reward. 

4. Balance Sheet 

Risky

Because employee invest in risky investments like own home, own car , own AC, own LED and own freeze. So, for buying them and maintenance them, he took the loan and increase the liability side of his balance sheet. 

Risk

Businessman invests in business. Yes it  has risk but it gives high reward in the form of profit and same profit, he reinvest in assets and in balance sheet level of assets increases day by day. He invests in commercial plats, business hr, business marketing investment and business factory. 

5. Focus 

Risky

Employee thinks business is risky because his focus to do hard work for other business. That is reason, he never gets financial freedom

Risk

Businessman thinks business is not risky project. It has only risk for those who are ignorant and came from job profile. His focus always to get assets and achieve financial freedom fastly. 

6. Learning and Reading 

Risky

All shouters who says business is risk, never read finance books and accounting magazines and finance videos

Risk

All says business is not risky and it has risk which they manage risk through finance books and accounting magazines and finance videos. 

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Svtuition: Risk vs Risky
Risk vs Risky
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