Ducks In A Row: Risk The Right Way
by Miki SaxonI came across an old article I’d saved and thought it would be of great value during these trying times.
Thinking about and understanding risk is important whether you consider yourself a risk-taker or not.
Last year, Bill Buxton, researcher, professor, and author wrote a great column on risk in Business Week.
“Entrepreneurs, like ice climbers, are often said to risk their necks. But there are ways to cut danger to sane levels—and some very good reasons to try.”
People often comment that both groups are, politely speaking, nuts.
After offering up a detailed explanation of ice climbing Buxton says, “…the four considerations employed by the ice climber are exactly the same as those used by the serial entrepreneur or the effective business person…”
They are training, tools, fitness and partners.
But to me, the most important thought is found in the final four sentences.
“The most dangerous way of all to play it is so-called safe. Safe leads to atrophy and certain death—of spirit, culture, and enterprise. There is not a single institution of merit or worthy of respect in our society that was not created out of risk. Risk is not only not to be avoided, it is to be embraced—for survival.”
It is risk without evaluation that helped get us where we are today.
Evaluating risk requires not the best case analysis of which Wall Street is so fond, but also worst case analysis wherein you think about the absolute worst results if the risk is taken.
Then think through whether and how you would deal with the results. If they can be handled go forward; if not revise the action.
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June 30th, 2009 at 8:00 am
Love the comments on risk — playing it safe in family life usually results in an “expedition” looking for some excitement on the outside — with both marriage and parenting that can be pretty dangerous.
June 30th, 2009 at 5:14 pm
I like the idea that risk taking in business requires the right training, tools, fitness, and partners. Although each these is vitally important, I find life most fun when I work with partners who are like-minded and ready for adventure.
June 30th, 2009 at 8:16 pm
Hi Marvin, you are so right. No risk results in boredom which results in idle hands and you know what that means:)
June 30th, 2009 at 8:41 pm
Hi Becky, it is more fun to work with like-minded people, but it often cuts down on creativity.