Intelligent risk-taking. How to make good risk decisions.

In the most general sense, “risk-taking” involves exposing yourself to potential negative outcomes in order to take advantage of a perceived ... SocialIcons Intelligentrisk-taking.Howtomakegoodriskdecisions. Whetherit’syouasanindividualemployee,yourdepartmentoryourentireorganization,yoursuccessisaffectedbyyourabilitytotakerisks.Inthissense,it’simportanttounderstandtherisk-takingprofileofyourcompany,yourteamandyourself.Whatyou’reaimingforisintelligentrisk-taking,whichmeanshavingaprocessformakinggoodriskdecisions.Iftherisksyoutakearenotintelligent,theconsequencescanhaveanegativeimpactonthetrajectoryofyourcareer,yourteam’sprojectwork,andeventheentirecompany’sbusinesssuccess.Poorrisk-takingissomethingyousimplycan’taffordtodo.Thetrickistofosteracultureofintelligentrisk-takingsupportedbysystemsthatencourageitaswell. Inthemostgeneralsense,“risk-taking”involvesexposingyourselftopotentialnegativeoutcomesinordertotakeadvantageofaperceivedopportunity.Risk-takingisessentiallyactinginthefaceofuncertainty.Onewaytoclassifydifferentrisksisbywhethertheyarepositiveornegative.Positiveriskswouldincludethingslikedecidingtostartanewrelationship,pursuingfurthereducation,startinganewbusinessorswitchingcareers.Examplesofnegativeriskswouldincludethingslikeunsafesex,drivingwhileintoxicated,orusingillegaldrugs.Noticehowthenegativerisksinvolvesomekindofimmediategratificationwithahighpotentialforharmwhilethepositiverisksinvolvealonger-termordelayedgratification. Peoplewhotendtodwellontheworst-casescenarioaremuchlesslikelytotakerisks.Theymayavoidthosepotentialnegativeoutcomes,butthey’realsodenyingthemselvespotentialpositiveoutcomes.Thisiswheretheoldsayingnothingventured,nothinggained,ringstrue. BarrierstoIntelligentRisk-Taking Whatgetsinthewayoftakingintelligentrisks?Herearefewofthemostcommonbarriersthatcomeupinrisk-takingprofiles: Fear:Whetherit’sthefearofrejection,failure,embarrassmentorevenjustcriticism,fearpreventsmanypeoplefromtakingintelligentrisks.Couragecanbethoughtofasactinginspiteofyourfearofpotentialnegativeoutcomes. Perfectionism:Nothingcankilltakinganintelligentrisklikeperfectionism.Ifyougetboggeddownintryingtogeteverysinglelittledetailexactlyright,opportunitieswilljustsailrightbyyou. Procrastination:Thiscanhaveasimilareffectasperfectionism.Itoftenrearsitsuglyheadintheformofanalysisparalysis.Manyopportunitiesthatcomeyourwayaretimesensitive,whichmeansyouneedtobedecisiveandactswiftly,butnotrashly. Irrationality:Thereareseveraldifferentformsofirrationalitythatgetinthewayofintelligentrisk-taking,butthemostcommonincludeirrationalneedsforcontrol,certainty,approvaland“playingitsafe.” Co-Dependence:Relyingonotherstotakealltherisksorsolveallyourproblemsisjustanavoidancetechniquethatallowsyoutoblameotherswhenthingsdon’tgowell.Meanwhile,you’llneverreceivethefullbenefitsofintelligentrisk-taking. Doyouseehowthesecanapplynotjusttoyouasanindividual,buttogroupsofpeopleintheformofteamsorevenentireorganizations?Understandingtheanatomyofariskandthebarrierstorisk-takingisthebeginningoffiguringoutwhatsystemswillhelpyou,yourteamandyourcompanytakeintelligentrisksthataremorelikelytogettheresultsyou’relookingfor.Herearesomespecificstepsthatwillhelpyouandyourcompanytakeintelligentrisks: Problem/OutcomeIdentification:Clearlydefiningwhatneedstobeaddressedisessential,otherwiseyoumayactonsomethingthat’snotdirectlyrelatedtotherealissue.Thenyoumustthinkthroughanddescribetheintendedoutcomesyouwanttosee,aswellaspotentialunintendedand/ornegativeoutcomesaswellaswhatbarriersstandinyourway.Thereshouldalsobeashort-term/long-termaspecttothisanalysis. TakingStockofthePast:It’salsoimportanttolearnfromthepast.Althoughyoudon’twanttobeconstrainedbypastexperiences,youwanttobeawareofpatterns(bothpositiveandnegative)thatmightaffectwhat’shappeningorbeingplannedinthepresent. ActionPlanandTimeframe:Ifyoudecidetheriskisworthtaking,comeupwithaplantoactonitthathasacleartimelineforachievingtheintendedoutcomes. ExecutethePlan:Again,thisisnotimeforhesitation,especiallyiftheopportunityistime-sensitive.You’vedecidedtheriskisworthtaking,sogetmoving. EvaluatetheResults:Thisfinalpartoftheprocessisessentialforlearningwhatworkedandwhatdidn’t–valuablelessonsthatwillhelpyouoryourcompanywhenitembarksonitsnextintelligentrisk. Nothinggreatwaseverachievedwithouttakingsubstantialrisks.Peoplewhohaveachievedgreatthingshavealsotypicallyencounteredseveralbumpsoffailureontheroadtosuccess.Byunderstandingintelligentrisk-takingandwhatgetsinitsway,yourcompany’sworkforcewillbereadytotakethekindsofintelligentrisksthatgetresults. Don’tMissTheseEssentialTools GettheTop20WaystoImproveMandatoryTraininginyourorganization. HerearetheTop10WaysLearningManagementSystemsCanImprovetheWorkplaceEnvironment LeveragingNewTalentThroughtheEffectiveManagementofMillennials November20,2014   Updated:March23,2015   intelligentrisk-taking,risk,risk-taking,talentmanagement    ShermanMorrison «AvoidingCommonWorkplaceInvestigationMistakes WorkforceOptimizationVersusWorkforcePlanning» LeaveaReplyCancelreplyYoumustbeloggedintopostacomment. 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