Every executive takes some kind of risk daily, from hiring the team to creating a marketing strategy. Taking risks is part of the role, but how would you ensure you make the right decision.
While it is impossible to predict how the decision will pay off, it is possible to take calculated risks to avoid failures.
What Is Calculated Risk?
A calculated risk has been carefully considered, with all potential costs and advantages weighed in.
Calculated risk-takers take calculated risks to achieve an objective. They don’t take chances with the future. Instead, they look for strategies to reduce risk to the most significant degree.
How To Take Calculated Risks?
When you are faced with a difficult decision or a decision you know would impact many people, then, in that case, the best option is to take calculated risks.
While every decision you take will have its advantages and disadvantages, below are the best ways you can make more calculated decisions.
Critically Analyse Your Decision
Break down your decision into smaller parts and analyse the risks allotted to it. This technique often helps you make decisions less daunting and look at everything at the micro-level. Start by writing minor components that make up the decision and the most specific part first.
Before taking any decision, step back and first collect as much information as you can. To access all the risks associated with the decision, write down all the possible outcomes. Also, find out ways to reduce the risk connected with every decision.
Learn To Say NO
It’s important to remember that not every idea is worth pursuing. It’s harder to make time for every opportunity that comes up your way if your plate is always full. It is okay to say NO to things if you feel that’s not worth pursuing.
If something isn’t working, alter course, but have a forward-thinking perspective. It’s preferable to foresee a problem before it hurts your business or bottom line. Create a regular check-in of your progress and analyse your every decision later. This will help you to make better decisions.
Making a decision takes a lot of time, courage and effort. Particularly in business when there are so many decisions involved on an everyday basis. Calculated risks are the only way to true innovation and growth.
I am a founder and an Executive Coach at Get-Set-Rise coaching with several years of experience, enabling top executives & business leaders to have a transformational experience that unlocks & unleashes their full potential.
If you want to get in touch with me, book a session, and let’s have a chat.