Reward and risk are the two sides of any opportunity. Both are present in any investment of time and capital.
The real question is ‘how do we risk assets to keep growing without putting everything at risk?’
Whether you’re talking about your career, your business, or your household, you need to create an environment that encourages risk taking, but isn’t a free-for-all. The best way to encourage risk taking is to remember these four principles:
- All Big S’s, or successes, come from small f’s, or failures.
- Make risks small, fast, and cheap instead of long, slow, and expensive.
- “Chalk the field” with limits and guidelines for risk-led experiments. Set limits to manage big downside.
- Think of experiences as experiments over time instead of chronological years. The number of experiments is more important than the number of years.
Risk taking is a necessity for growth and transformation and it should be a little scary, but not terrifying.
Manage it with some common sense to control the downside, maximize the positive results – and still sleep comfortably at night.
Have a great week.
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