Take a risk – don’t be afraid
A ‘RISK‘ is a combination of a ‘THREAT’ and the ‘PROBABILITY’ of its occurrence.
A useful presentation of risk management and a system to handle them.
Similar to a life insurance policy – a person suffering from asthma will pay a higher premium. The insurance company see him as a ‘threat’ with higher probability to redeem his benefits. They manage the risk by collecting a higher premium.
So – a risk is actually a formula; Probability multiplied by the negative impact.
When talking about risks – it should always be associated with a plan of some kind (We will assume a plan is in place).
Yes, risk taking is inherently failure-prone. Otherwise, it would be called sure-thing-taking.
James Robert “Jim” McMahon, Jr. (American Football Player. b.1959)
All GOOD PLANS has risks.
Risk management system should be a tool not a target. It is affective only if it does not consume too much of managers resources. The trick is to increase awareness and FOCUS on the real risks.