In my previous BLOG-post I introduced my short series about Self-Leadership and I listed the 6 secret steps to reach your best Self-Ledership status. Today I will offer you step N°2, it´s the topic about the personal risk profile.
NOTE: know yourself, and you know the world! We all own the same brain, we just put and imprint it with different data and experiences. But our control- and result organ is the same for everyone.
(2) The risk profile
Definition: an evaluation of an individual or organization’s willingness to take risks, as well as the threats to which an organization is exposed.
A risk profile identifies as: (1) The acceptable level of risk an individual or corporation is prepared to accept, and also their aversion of risks. (2) The risks and threats faced by an organization. This shall include the probability of resulting negative effects.
As for all decisions in life, we need the relevant information. Your Information Mgmt. (ability) is quite relevant for this step . At any time in your business operations you have to be sure how much you are allowed to risk, and be sure what RISK means for you and your business (is it rather an opportunity?).
RISK is an insecure happening which might effect your project-goals negatively. Be prepared!
Know the numbers of both sides, internal and external, when being confronted with a risky decision. Have a risk profile available which controls all the processes involved. Means: have a list of single process steps and write down what can go wrong with each step. Write down the consequences this potential effect will deliver. Write down how much this will cost or “produce extra costs and time” when it really happens. Do not decide before you know those numbers and then carry all the (good) consequences.
Have a scale which gives the probability of each potential negative effect in per-cent (%). It´s simply guessing the likeliness or chance that THIS CAN happen or won´t occur. This is the exact concept of how insurances calculate prices for their customers packages.
TAKE AWAY: if we mix all the special knowledge per business and use it smartly for our own (big) business then we face best chances for dealing with great wins and potential losses. It won´t work all the time for everyone, but in best case: mostly. It´s all up to information and dealing (internally) with the right numbers.
BE A DECISION MAKER. BECOME OUTSTANDING.
rita jaskolla – Leadership Architect –