To determine your circle of competence, you have to understand where your true competence lies, without allowing subjective beliefs to create undue assurance in your abilities. 

To determine the breadth of your circle of competence, you need to have an honest look at your background, training, qualifications, or personal familiarity in a subject. 

If your goal is to avoid risk, you should stick to your circle of competence; however, if your goal is to innovate, you will be better off stepping outside of your circle so you can come up with non-obvious solutions.

Never stepping outside the boundaries of your circle of competence may stunt your creativity and ability to discover new ideas.

To take advantage of your circle of competence is to find a balance between honestly acknowledging your capabilities, and strategically striving to expand your knowledge and horizons.

• Ensure predictable progress. Define the limits of your circle of competence to ensure progress.
• Push your boundaries. Acquire new skills, set ambitious goals, offer your help on a project you are unfamiliar with.
• Reassess your circle of competence. By leaving your comfort zone for just one-fifth of the time, there is potential for learning, growth, and behavioral change.