Tag Archives: spot analysis

Appetite for Risk

There are many behavioral attributes that have been identified as key leadership skills.  Often overlooked is the willingness to accept risks, albeit, not recklessly.

Sometimes the situation is bereft of information neededto assist in making an informed decision.  In these cases the critical balance leaders need to be able to navigate is between expedience and caution.

Intrinsic Risk

All activities have some risk associated with them.  That is some level of exposure to danger, harm or loss.  The level of exposure can vary widely but it is always present, there is no zero risk when it comes to deciding how to proceed.

For example, If you decide to cross a low  traffic road in clear weather with visibility for miles in both directions, there is still a risk (however small)  a car will appear and hit you resulting in your death.

The motivating factors, why is the decision before you in the first place should be the main drivers but the risk averse will often focus on the potential negatives resulting in delay and potentially causing the decision to never be made.

Balance on the Fly

The best leaders are able to quickly determine if delay is appropriate for reasons of insufficient data or lack of urgency or major risk or if accepting the risk balanced against the potential benefits is the best approach.

This ability to weigh the options in short order contributes to a leaders reputation.  Their track record in this regard builds both respect and confidence among those they interface with.