Your preference for risk - a psychological measure that changes slowly throughout our lifetime except for sudden shifts with big life events (eg losing a family member, having a baby).

Your capacity for loss - a situational factor that depends on your circumstances and, say, the context of the money you are taking a risk with. For example, if money is an unexpected bonus or gift, then you probably have a greater capacity for its loss, than if you earned it.

Both aspects are important. For example, some people are naturally daredevils on the ski-slopes, but even they may slow down a little when they have a family depending on them.

Core components of risk

From Michael Braungart and William McDonough’s groundbreaking book Cradle to Cradle (you should buy it just to feel the book itself). Production and use need not be a straight line. It has to be a loop.

Travel and new foods