The art of prudent risk taking

Journal/Book: Training Dev. 1998; 52: 1640 King St, Box 1443, Alexandria, VA 22313-2043. Amer Soc Training Development. 32.

Abstract: What's your threshold for risk taking? This article tells you how to determine that and how to take risks so you can open up the possibilities for leadership, personal growth, and innovation. Kindler proposes that most people's tolerance (or intolerance) for a certain amount of risk has to do with their life experiences and natural propensity for risk. The article defines risk taking as a decision-making process with the potential for great gain or great loss, with uncertainty built in. But first, says Kindler, people have to decide which risks are worth taking and which they should abandon. People also have to determine whether their behavior patterns fall on the side of risk avoidance or risk preference. Kindler provides a checklist of behaviors that fit each pattern. When making a decision or assessing the degree of risk in any situation, says Kindler, it's important to start with a beginner's mind - a Zen Buddhist term that means a childlike state in which we don't have limiting assumptions and we're open to fresh perspectives. Kindler points out that many organizations automatically question all new projects and all employee initiatives and suggestions without truly taking into account the issue of risk - in other words, it it too risky or worth the risk? Kindler supports the concept of prudent risk taking. That involves planning, clarifying objectives, assessing the reward-risk ratio, trying to cut down on the risk factors, and having a contingency plan. The article provides specific actions for each of those steps.

Note: Article Kindler HS, Ctr Management Effectiveness, Box 1202, Pacific Palisades,CA 90272 USA

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