Three Questions to Ask When Making RISKY Decisions

Really been enjoying Jim Collin's book How The Mighty Fall.  In one of his chapters, Collins gives three important questions to ask when "making risky bets and decisions in the face of ambiguous or conflicting data."  Here they are:

1. What's the upside, if events turn out well?
   
2. What's the downside, if events go very badly?
   
3. Can you live with the downside?  Truly?