How would you handle a high risk / high reward vs low risk low reward circumstance?

IF RISK IS VERRY TOUGH SO I HAVE SOME HELP FOR ATHOR PERSONS LIKE GOOGLE

As far as financial sector is concern you can't zerorise the risk, only you can minimize the risk.

You need to identify,quantify & minimize the risk by adopting the proper quality risk mitigants.

You have to preserve the risk absorbing tools as a contingency method to face the risk in the organisation.

What Is a Low or High-Risk Investment? 

If investors accept the notion that investment risk is defined by a loss of capital and/or underperformance relative to expectations, it makes defining low risk and high-risk investments substantially easier.

A high-risk investment is one where there is either a large percentage chance of loss of capital or underperformance, or a relatively small chance of a devastating loss. The first of these is intuitive, if subjective - if you were told there's a 50/50 chance that your investment will earn your expected return, you may find that quite risky. If you were told that there is a 95% chance that the investment will not earn your expected return, almost everybody will agree that that is risky.

The second half, though, is the one that many investors neglect to consider. To illustrate it, take for example car and airplane crashes. The odds of any driver experiencing a car crash in their lifetime is quite high (25%), but the odds of death are relatively low (less than 1%). By comparison, the odds of experiencing a plane crash are quite low (one-hundredth of 1%), but the odds of dying in a plane crash are quite high (about 67%).

What this means for investors is that they must consider both the likelihood and the magnitude of bad outcomes. Low-risk investing not only means protecting against the chance of any loss, but it also means making sure that none of the potential losses will be devastating.

A Few Examples

Let us consider a few examples to further illustrate the difference between high risk and low-risk investments.

Biotechnology stocks are notoriously risky. Between 85 and 90% of all new experimental drugs will fail, and not surprisingly most biotech stocks will also, eventually, fail. In the case of biotech stocks, there is both a high percentage chance of underperformance (most will fail), AND a large amount of potential underperformance (when biotech stocks fail, they usually lose 95% or more of their value).

In comparison, a United States Treasury bond offers a very different risk profile. There is almost no chance that an investor holding a Treasury bond will fail to receive the stated interest and principal payments, and even if there were delays in payment (extremely rare in the history of the U.S.), investors would likely recoup a large portion of the investment.

It is also important to consider the impact that diversification can have on the risk of an investment portfolio. Generally speaking, the dividend-paying stocks of major Fortune 100 corporations are quite safe, and investors can expected to earn mid-to-high single-digit returns over the course of many years.

That said, there is always a risk that an individual company will fail; companies like Eastman Kodak and Woolworth's are famous examples of one-time success stories that eventually failed. What's more, a randomly chosen stock held for a decade has about a 20% chance of losing money. If an investor holds all of their money in one stock, the odds of a bad event happening may still be relatively low, but the potential severity is quite high. Hold a portfolio of 10 such stocks, though, and not only does the risk of portfolio underperformance decline, but so too does the magnitude of the potential overall portfolio decline.

Risk management is the art of avoiding yesterday's mistakes, while recognizing that nature can always create new ways for things to go wrong. 

Depending on the organisation goals and major focus, the high risk investiments with high reward, i would collaborate with the major partners involved to able able to share the responsibilities but low risk, low valve, i can tolerate or treat the risk.

I will do each and every analysis for cost,specification detail,labour and material price for high risk/high reward circumstance; by taking all the time the analysis takes.In case of low risk low reward circumstances i will do simple analysis which doesnt consume much time and consider products or services provided by other suppliers or prviders specializing in the area of the need.

In both cases risk need to measured and see the impact from financial, operation and other element, then mitigation those risk must be taken in consideration in reward

I would like to highlight risks which are hurdle to achieve high goal.

I prefer High risk and High rward becouse i belive in planning, analysing ,immplementing , evaluatining then corrective action in addition we can control every risk if work hard as team to improve the problem and get better solution.

I can handle a high risk eith my all abilities which I have according to my work experiences.