Risk and businesses are inseparable twins. In fact, taking a calculated risk would yield super normal profits in a business. It is not about making random punts but it requires a good understanding, practice and discipline. If we are to define risk, it is a factor that would prevent you from achieving the objective. There are various factors that could become a risk.
Entrepreneurs such as Sir Richard Branson, employs a team of dedicated risk management professionals prior to making an investment decision. This approach has yielded super normal profits and business success to Virgin group of companies. Sir Richard Branson is one example out of tons of successful entrepreneurs in the world who take calculated risks in investing.
Isn’t it exciting to become an effective risk taker and to reach the pinnacle of the business world ? If the answer is yes, let’s keep reading the rest of the article to understand how to become an effective risk taker.
Factors that would make you an effective risk taker
- An effective risk taker would be achievement driven and they seek necessary support when required.
- They tend to see a bigger picture than making decision in isolation.
- They make use of their experience and understand patterns.
- They do not need 100% information to make decisions but that does not mean that they make random calls.
- They make themselves accountable for the outcome, which is very smart.
Tips on taking risks
- Recognize that risk-taking is a behavior and not a process. Keep learning to get better at it.
- Make risk planning central to your business model and corporate culture.
- Identify your best risk-takers and empower them to make decisions, and likewise, appoint mentors to help ineffective risk-takers to improve so that they would takeover one day.
- Define structures, roles, reward and recruitment policies that support your corporate appetite for risk.
- Keep away from employing ambitious high-flyers and have teams to make best decision on risk management.
- Ensure risk management cascades down from the top. Top management need to communicate consistently and ensure all departments understand their responsibilities around risk.
- Make yourself accountable for the outcomes as good risk takers make themselves accountable.
- Where necessary, get external experts to train to understand the latest.
Does it sound worthy becoming an effective risk taker or do you understand the importance of training your risk management team on “Art of risk taking” ? If the answer is yes, please feel free to contact the lead trainer Prassanna Pathmanathan on firstname.lastname@example.org