In this post, Amanda Setili explains why taking risks may be the safest strategy.
The world is always changing, but lately the changes have felt faster and more extreme. In times like these, your ability to manage risk and uncertainty can give you a huge competitive advantage.
To put this another way, in volatile times, taking on too little risk is dangerous. You may be left in the dust as competitors invest in new arenas that you considered too uncertain.
Some of my most successful clients encourage their teams to swing for the fences AND to have a systematic plan to manage risk. They break the risks into distinct pieces and assign someone to manage each specific risk, such as the risk that suppliers will not be able to perform, or the risk that customers won’t understand the product.
They’re also very clear about the risks that they are willing to take that other companies will not. For example, an organization may choose to self-insure, because they better understand the risks they’re taking than insurers do.
To accept more risk in a responsible manner, it pays to break the risk down into smaller pieces. Then, manage each of these pieces. Set clear goals for what you need to learn in order to mitigate each risk.
Key points include:
- The benefit of risk taking
- Managing risk
- Risk options
Read the full article, In Volatile Times, the Riskiest Strategy Is to Take Too Little Risk, on LinkedIn.