
I was always being told to take care when I was young, but taking risks was far more appealing. By doing so, then and throughout life, it’s created some pretty amazing experiences and results, including my business.
I’m certain there are many people who will relate to this.
We can’t live a life without risk and so learning to take calculated risks (risk management) when we’re young is essential. I want my own kids to be risk takers and even better risk managers.
Not all risks taken go well, but it’s all learning.
For example, as a kid just having watched an Indian Jones movie, tying one end of a rope to a wall mounted hat rack and then swinging on it from the stairs resulted in a major crash with the rack being pulled clean off the wall. It was a mess. My only calculations before hand focused on which stair to leap from, the knot and the strength of the rope. I learned a lot about physics and other factors to calculate next time.
An example of a risk going well?
Buying a one-way ticket to India with no plan and just a sense of adventure. There were plenty of risks that needed managing:
- If needed to return home quickly. I had money in reserve to meet that need if it became necessary
- Exposure to a range of illnesses not present in the UK. I did my research and got the jabs I needed
- Not having a plan. I believed I was resourceful enough to deal with most, if not all eventualities. (This isn’t quite practical risk management, but self-belief is important in risk taking).
Strategies for risk taking
In leadership, there are many risks. Calculating those risks and managing them are essential. Here are a few strategies that can be applied:
- Be clear on the reason why. Taking a risk just to satisfy the ego, is probably not the right driver. A risk must align to your vision/purpose.
- Bring your team in to uncover the blind spots. Ask, what am I missing?
- Check effort against reward. Will there be enough reward for the effort the risk will take?
- Have an answer for every risk. Clearly state the risk and how it’ll be managed.
- When you fail, learn from it and build on it. Chances are you are stronger for it.
- Avoid surprises. Communicate the risk including how it’ll be managed. Get buy in where you need it.
- Avoid harm. Like animals used in movie stunts, ensure no one is harmed
- Check complacency, you may have taken risks and had great success before, it doesn’t mean you can take another risk with your eyes shut
Note, I sign my articles like this …
Take risks,
Sav
And whilst I genuinely encourage risk taking, I encourage risk management even more.
Take risks,
Sav
Photo by David Savage: Take at the bottom on Von Hill, South of Walter Peak Station, New Zealand