When we say that someone has fallen on bad luck, we relieve that person of any reasonability for what has happened. When we say that someone has had good luck, we deny that person credit for the effort that might have led to the happy outcome. But how sure can we be? Was it fate or choice that decided the outcome?
Until we can distinguish between an event that is truly random and an event that is the result of cause and effect, we will never know whether what we see is what we’ll get, nor how we got what we got. When we take a risk, we are betting on an outcome that will result form a decision we have made, thought we do not know for certain what the outcome will be. The essence of risk management lies in maximizing the areas where we have some control over the outcome while minimizing the areas where we have absolutely no control over the outcome and the linkage between effect and cause is hidden from us.
Peter Bernstein, Against the Gods