We’ve all heard the trite expression, “No risk. No reward.”
Risk is truly something each one of us needs to address when considering options and making decisions. Too often, as we approach a decision or choice, we ask “What is the risk I’m taking if I do this? Ever the contrarian, I challenge that question with what I believe is a more important consideration, namely, “What is the risk I’m taking if I don’t… if I don’t do this?” Often, not doing something can be an even greater risk than doing something.
In the end, the only regrets we will have are those related to the chances we didn’t take. Legendary comedian Lucille Ball said, “I’d rather regret the things I’ve done than regret the things I haven’t done.”
Characteristics of risk takers
Clearly, there are characteristics of successful “risk takers.” Priding myself as one who readily takes at least “calculated risks” and who has studied the qualities of risk takers, my observations follow.
- Risk takers always take responsibility for their actions.
- Risk takers thoroughly believe the risks they take are significant.
- Risk takers are positive, upbeat and enthusiastic about their choices.
- Risk takers are typically thoughtful about their decisions.
- Risk takers are realistic about the “upside” and “downside” of their decisions.
- Risk takers typically do not care what others think of their decision.
- Risk takers have a low level of fear of failure.
- Risk takers are myopically focused on the task at hand.
- Risk takers very often have a good sense of humor.
- Risk takers know their priorities and stick to them.
- Risk takers are characteristically confident in their decisions.
SHRM, the Society for Human Resource Management, defines the following basic techniques of the risk management process. In short, it is a pragmatic and structured way of addressing risks be they positive or negative in nature.
- Identify The Risk or Risks
The first step to understanding potential risks is to know what they are. This is a logical process. Make a list in rank order of importance and risk severity.
- Analyze Risk Impact
First of all, examine the probability of a risk (or risks) occurring as well as the likely impact each risk will have on you, your colleagues, your organization or your project.
- Prioritize Action Steps
Once you’ve defined the probability and impact of a risk (or risks) it is now time to prioritize specific, measurable action steps to eliminate or mitigate the risk.
- Alleviate Risks
The common ways to deal with a risk are first, avoid the risk entirely… secondly, deal with the risk head-on and eliminate it through energetic action… Obviously, focusing on “lessons learned” is important so as to avoid getting into a similar risk scenario in the future.
- Track Risks
An important final step in this process is to monitor and track a risk or set of allied risks. The learning you can receive by following the path of a risk is typically invaluable and above-and-beyond gaining a better sense of where, and how the risk arose… you’ll be better prepared to attack the next one that comes forward.
Through it all, taking risks are an important part of our lives and careers. Hall of Fame baseball manager Tommy Lasorda (Dodgers) said, “You can’t steal second with your foot on first.” By the same token, Mark Twain wrote, “Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did do. So, throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”
To be a better “risk taker,” there are some things you must do and master. First of all, thoroughly research the risk, the opportunity, the challenge, the related obstacles and the potential rewards. Secondly, go into the endeavor or enterprise or activity with your eyes wide open fully understanding the downside and the risk… and move past the fear of failure. That will help prepare you mentally for every and any eventuality. Thirdly, go slowly. Approach a challenging, risky situation in a step-by-step, controlled manner. Finally, study or meet with calculated risk-takers and learn from their process and model.
In closing, I’d like to share two favorite quotes relating to risk… one from Wayne Gretzky, legendary hockey superstar and one from iconic author T.S. Eliot. Gretzky said, “I miss 100% of the shots I never take.” Eliot wrote, “Only those who risk going too far can possibly find out how far it is possible to go.”
Manage risk. Manage success.
Ira Blumenthal is a business consultant, a Georgia resident, a best-selling author, a globally renowned public speaker, a university educator and a college Lacrosse coach. Ira welcomes inquiries and can be reached at Ira@Iraspeak.com. His web site is www.IraSpeak.com
