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    Entries in Risk (2)

    Friday
    Nov302012

    Hunny, You're Risk Mitigating Again...

    Not a phrase I've ever heard from my wife...not likely that I have will.  The concept however, I hear all the time.

    In my professional life, it's what I do.  Internally with our team, externally with clients as they grow their business, asking the question: If you do this, what's the worst thing that could happen? Or better yet: If you do NOTHING, what's the worst thing that could happen?  At the core of Risk Mitigation is the promotion of strong decision-making.

    Risk Mitigation is boring.  Most people never think about it, because it's much more glamorous to run hard and chase dreams than lean on the emergency brake.

    Sometimes it's the language that you use that is important; "We're doomed if we do this!" Are you doomed...or are you just afraid?  Other times it's just the demographic you are in.  Entrepreneurs are known for being profoundly unbalanced in their both high-tolerance for risk, and intolerant for those that refuse to risk anything.

    There is however a healthy balance in the world of risk mitigation that can be summed up in a simple statement: Know the risks.

    The risk adverse person hates risky situations and/or environments that they steer clear of them altogether...often then by default steering clear of opportunity.

    The overtly risky person runs to risk...because where there is risk, there is opportunity!

    The balance is in the middle.  Define the risk, make a judgement call on the risk vs reward and move ahead.

    Sounds simple doesn't it!

    Unfortunately, when you're "gut" says jump, but all logic and those on your team say "don't"...what then?

    There are many stories of individuals that beat the odds, and jumped when everyone was staying put...and became a huge success.  Unfortunately, for every 1 of those stories, there are hundreds (if not thousands) of stories where the individual or company "jumped" and landed in bankruptcy or financial hardship.

    Making good decisions starts with surrounding yourself with great people, but the battle is often won or lost on the scale of knowing the risks!

    Happy Jumping!

     

    Tuesday
    Apr032012

    S-T-O-P...STOP

    It's a sign that we learn at a very young age.  Right now we're teaching my oldest daughter (who's almost three) about the different meaning of the colors on a traffic light, as well as what you are supposed to when you see a big red STOP sign.

    As expected, she's become a little police officer quite quickly, warning me of upcoming stop signs and red lights 50+ feet away.  As the cuteness of it fades, I began to think about the reasoning behind what she was doing.  She knew that something was coming...something that she wasn't sure if I saw...so she wanted to warn me.  At the time of warning, I have two paths to choose:

    1) Listen.  Stop.  Avoid injury. 
    2) Don't Lisen. Blow through the warning and the sign. 3) Risk injury and even dealth.

    Seems pretty simple.  The sign is designed to protect me, and my resident police officer is telling me to listen to the sign to avoid suffering.

    Unfortunately, life doesn't have big red signs and doesn't always provide you with a 3-year old giving you advice at will.  That being said, we can quickly blow through the stop signs.  Here are three lessons I've learned through both listening and NOT listening to the signs that were in front of me.

    1) Ask Around - You're not the only one with a problem.  We all have out own, and chances are...someone you know has been where you are.  There is wisdom in the council of many...seek it and listen.

    2) Perform an Efficient Autopsy - This is often the hardest one.  Typically, people either want to forget and move on OR dig deep and spend to much time in analysis of "what could've been."  There is a very fine balance of looking at where you went wrong, stoping to reflect and then moving on.  The balance is in the time spent and the action plan that comes from the lessons learned.  Learn them. Move on.

    3) Intuition is not Overrated - I can recall many occasions when I went against my "gut" feeling on an issue and later had wished I had listened.  Based on #1 (advise from others) and #2 (lessons from past experience) your intuition can be a valueable asset.  Don't solely rely on it, but vette it as a credible source of value in the decision making process.

    I've blown through stop signs and it never ends well.  Look for the signs...Follow the instructions.