By daring to seize opportunity and gamble on an outcome, you potentially secure greater value than the organisation that fears to take any risk at all.
But, before taking on risk, give it careful consideration. By determining how much risk you can afford to take, you acknowledge just how much or how little you can afford to lose. Risk appetites will fluctuate with internal and external pressures, profitability and financial exposure. So, a risk strategy ought to be flexible – an indicator, rather than an inhibitor, of actions you might or might not take.
The risk-taking organisation is not foolhardy. Knowing that risks can materialise, it prepares well, crafts governance structures and rehearses its responses to potential scenarios. It tests how well it can withstand the impact of risks becoming reality. It verifies that it has the right alerts and measures in place to mitigate hazard while securing rewards from daring to pursue opportunity.
If you would like to discuss how our consulting team can help your organisation to manage its exposure to risk and develop appropriate actions, please contact Matt Humphrey or Paul Brown. Alternatively email the team at firstname.lastname@example.org.