The biggest problem with risk? It’s not taking one.
We all love stories in which the hero/heroine takes a big risk that pays off.
In today’s business climate, however, risk is rarely a grand adventure and mostly a daily necessity. Why? Given the volatility and uncertainty of the business world, we are less and less likely to have a predictable route to success—so stepping into the unknown on a daily basis is the only way to go.
If that makes you nervous, it’s time to change your relationship with risk.
Agile organizations view risk positively because the cadence of their work includes a series of rapid innovation cycles. Teams devise initiatives, predict outcomes, take action, observe, analyze, repeat—and they do it fast. The risk of failure is built into the cycle. Continuous feedback enables teams to recalibrate based on incremental outcomes.
Rapid innovation cycles require people to deal with nonstop uncertainty. Success in an agile environment isn’t about being in love with risk. It’s about making the most of any outcome. Risk is our friend and our lifeline—something to be embraced not feared—and taking rapid risks means developing the psychological skills to manage uncertainty and setbacks.
People say I’m comfortable with risk, and that’s because my attitude can be summarized in a simple mantra: Try it. Learn from it. Get over it!
1) Try it: Develop emotional risk insurance
“Try it” means risking failure. You can’t sit still. Continuous risk-taking requires confidence and emotion control, which together enable you to stay calm and focused when you’re out of your comfort zone. Confidence is grounded in the belief that you’ll be okay with success or failure because either outcome moves the process forward. Emotion control means facing the risk of failure with a degree of detachment. You regard strong negative feelings like disappointment as just another part of overall progress.