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Seven Ways To Cure Your Aversion To Risk

https://www.fastcompany.com/3045577/seven-ways-to-cure-your-aversion-to-risk

fastcompany.com

Seven Ways To Cure Your Aversion To Risk
We all have a tolerance for risk. Some of us need to build up courage to try something new, while others face fears head on, skydiving through life. The biggest risk, however, is avoiding risks altogether. Leaders cannot stay safe and let the world pass them by, says Ram Charan, author of The Attacker's Advantage: Turning Uncertainty Into Breakthrough Opportunities .

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Start With Small Bets

Start With Small Bets

Risk should preferably be viewed as an experiment. This helps with testing innovation and reducing risk if things don't turn out as intended.

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Imagine the Worst-Case Scenario

When you take the time to consider the downside possibilities, it will be less frightening if they happen. This will give you the confidence to stay the course.

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Develop A Portfolio Of Options

If you have only considered one possibility, you should probably worry about it.

Find many possibilities for success, then you can be positive that at least some of them might work out.

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Have Courage To Not Know

You will almost always have to take action before you know all the components your success will depend upon.

Be willing to commit to the path even when you are unsure of all the details. You can adjust your path along the way.

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Taking A Risk ≠ Gambling

Going on the offense does not mean that you place your trust in theories that you have not thought through.

Looking at your inner fears will help you to see things more realistically, creatively and move more directly.

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Take Your Eyes Off Of The Prize

Embracing risk can be difficult if you focus on the outcome.

Instead, break the decision-making and the action process into smaller steps.

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Be Comfortable With Good Enough

What prevents people from taking a risk is thinking that you can't start until everything is perfect.

We need the courage to make decisions with imperfect data and move forward as information becomes available.

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SIMILAR ARTICLES & IDEAS:

Perspective-taking

It involves being able to see the point of view of someone you usually consider to be part of an outgroup.

Research finds that being able to offer another point of view - especially if...

Bridging differences

Both perspective-taking and perspective-giving are powerful tools to help negotiate differences, particularly between groups of different power dynamics.

Empathy isn’t enough

Although similar, perspective-taking is not the same as empathy. Empathy falls short in trying to reduce polarization. In fact, empathy appeared to make things worse.

We tend to feel empathy more towards people like us, that we can relate to. If an outgroup attacks an ingroup, the empathic concern doesn't help.

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Curiosity leads us to generate alternatives

Curiosity leads us to generate alternatives

When our curiosity is triggered, we are less likely to fall prey to confirmation bias (looking for information that supports our beliefs rather than for evidence suggesting we are ...

Curiosity and innovation

Encouraging people to be curious generates workplace improvements.

When we are curious, we view tough situations more creatively. Studies have found that curiosity is associated with less defensive reactions to stress and less aggressive reactions to provocation.

Reduced group conflict

Curiosity encourages members of a group to put themselves in one another’s shoes and take an interest in one another’s ideas rather than focus only on their own perspective.

Thus, conflicts are less heated, and groups achieve better results.

Risk register

Before you start risk management, it is important to identify the risks the company is exposed to.
Establish a catalogue of risks or a"risk register"

Definition of a risk

A risk can be defined as an effect of uncertainty on the objective. It is a different outcome from what you expected and can address, create or result in opportunities and threats.

  • Risk is not an expected adverse development. If you expect the outcome, it is not a risk.
  • Risk is not a difficulty or a challenge if you are already aware that the situation exists now.

Risk terminology

  • Threat – the source of the risk event that causes uncertainty.
  • Risk exposures – the amount that theoretically is at risk if the threat becomes a reality.
  • Risk – the collection of threats/causes and exposures that are treated and managed as a single whole.
  • Risk levels – risk level indicates how serious the risk is.