How To Approach Risky Decisions
- Stop And ask why: Weigh the risk-reward ratio before taking action.
- Seek advice from someone neutral: Seek a mentor who can give unbiased advice on your plan of action.
- Winning is not enough: Achieving an end goal feels shallow after a day. Win the entire game by focusing on success in each and every step and action.
- Reassess your decisions: Don’t just wager big for the sake of it, fine-tune your decision making and tone down the hyperbole and excitement.
- Hold yourself accountable: Analyze other options and make yourself accountable for your final decision
MORE IDEAS FROM THE ARTICLE
Courage isn’t about reckless risk-taking but is often the result of calculated actions that are taken in a measured and appropriate manner.
In business, bold, courageous actions provide the risk-takers with psychological currency, a kind of motivational force that emboldens an otherwise risk-averse individual.
Boldness becomes the fundamental component while pursuing an endeavour which is high in risk and reward.
Courage is the pursuit of a higher purpose, according to Aristotle.
Courage is truly present when the fear is known and real, yet action is taken with eyes wide open. Many business actions like a hostile takeover, purchasing volatile stock or even the very act of starting a business are representations of a courageous act.
RELATED IDEAS
People often confuse risk with uncertainty. But the terms "risk" and "uncertainty" do not refer to the same thing.
- Risk is precise and quantifiable.
- Uncertainty is when the underlying system is not understood.
The more you understand a system, the more able you are to convert uncertainty into risk.
- Control the “controllable.” Certainty is vital in business, but also elusive.
- How people cope starts with their attitude. Where there is change, there is opportunity.
- Learn by doing. Test a few things in a less risky environment first.
- The "Ready, Fire, Aim!" approach works well for small decisions. Opt to skip the months of market research that might improve the decision.
Your fears will never completely disappear, and you will never win the battle against them.
When you can finally accept fears and invite them in, it makes courage more accessible.