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Without it nothing useful would ever be doneLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.A pedestrian walks along Humber Bay Shores Park in Toronto on July 15. Photo by Ernest Doroszuk/Toronto Sun filesEvery worthwhile achievement, every result we enjoy today, began with someone taking a risk. The entrepreneur risks bankruptcy. The scientist risks failure. The immigrant leaves behind everything familiar in pursuit of a better life. The investor risks losing money. Even falling in love is an exercise in accepting uncertainty.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorWithout risk-taking, there is no progress. Every investment, every business venture and every important life decision involves uncertainty. When we begin treating every uncertainty as though it were a danger that governments must eliminate, we become less resilient, less innovative and, ultimately, less prosperous.A saying often attributed to Rita Mae Brown observes that “good judgment comes from experience, and experience comes from bad judgment.” There is much truth in that, but it’s incomplete. Every worthwhile venture involves uncertainty, and even successful decisions generate experience. We learn not only from failure but from taking considered risks, whatever the outcome.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againWe willingly accept uncertainty because the potential reward outweighs the possible loss. Sometimes we succeed. Sometimes we fail. But refusing every risk guarantees that nothing changes.Children learn for life. They need opportunities to climb trees, ride bicycles, settle playground disputes and experience disappointment. They discover that failure is not fatal — it is educational. We learn balance by falling off bicycles, judgment by making mistakes and resilience by discovering that setbacks rarely prove fatal. Childhood is nature’s training ground for uncertainty.It has become fashionable to criticize corporate profits, capital gains, billionaires and, lately, the world’s first trillionaire. Yet profit is not simply money earned. It is compensation for bearing uncertainty. Entrepreneurs devote years of effort without any guarantee of success. Investors commit capital that they may never recover. Most new businesses fail. Hindsight leaves us with the successes while forgetting the countless failures that made them possible.Governments have become increasingly willing to appease a disgruntled electorate by shifting today’s costs onto tomorrow’s taxpayers. They rescue failing institutions, guarantee mortgages, subsidize industries and cushion economic downturns. Some intervention is both necessary and desirable. But when society expects every loss to be socialized while condemning private success, the incentive to take entrepreneurial risks gradually diminishes. We cannot eliminate risk; instead, we should recognize and reward those willing to bear it.One of humanity’s greatest economic breakthroughs was learning how to share risk. In Against the Gods: The Remarkable Story of Risk, Peter L. Bernstein describes how in the late 17th century Edward Lloyd’s London coffee house became the birthplace of modern insurance. Merchants financing dangerous ocean voyages paid premiums to individuals who signed their names beneath the details of each voyage. These “underwriters” accepted a share of the financial risk in return for a fee.Once risk could be measured and priced, it could also be shared. Investors no longer feared that a single shipwreck would ruin them. Capital flowed more freely, international trade expanded, and modern finance took another decisive step forward. Civilization advanced not because risk disappeared, but because people learned how to manage it.Henry Fiorillo illustrates the same principle in Fool’s Gold, his book on angel investing. An investor may invest $25,000 in each of 10 startups. If nine fail, the lone success must return more than $225,000 merely to break even.Success depends not on avoiding risk but on understanding it, diversifying it and accepting that a handful of exceptional successes must compensate for many disappointments.Every innovation, every company, every scientific breakthrough and every prosperous society began with someone accepting uncertainty that others preferred to avoid. We cannot eliminate risk without also eliminating opportunity. The choice is not between risk and safety; it is between managed risk and stagnation.Risk is not the enemy. It is the necessary price of progress.Harry Margulies, a tax adviser, author and former lecturer at Lund University, has lived and practiced in Sweden, Canada and the United Kingdom. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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