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The legendary Warren Buffett has many wonderful tips and sayings, but when it comes to his interpretation of risk, I have a nuanced opinion.
Risk Managers often hotly debate the definition of risk which ISO 31000 has it as
Risk is the effect of uncertainty on objectives.
just three words which when taken in the context of our discussion here, leaves us with the reality that what is risky for one person may not be for another.
Importantly, "knowing what you are doing" does not mean risk is negated, just that you are actively monitoring the system of uncertainty you are working with in a defined way across a specific time horizon.
You should be making agreed tactical adjustments (decisions based on information you have) to your execution approach (knowledge about how to do something effectively and safely) and to your strategic edge (your knowledge about why something happens) to maximize outcomes and minimize losses in a repeatable manner.
If you are adjusting your execution approach you are controlling risk. If you are adjusting your strategic edge, you are attempting to capture opportunity.
As always, thoughts are welcome.