Risk is part of life

Risk arises whenever we do anything and even when we do nothing. Your aim, whether in business or in your personal life, should not aim to eliminate it. That would be impossible as well as undesirable. We need to balance one risk with another. We also need to balance risk and cost. The cost of reducing the risk and the cost of failing to do so.

Risk needs planning

I have posted recently about the need to make and revise plans at this time of year. However, plans are likely to be unrealistic if they fail to take risk into account. Things rarely go exactly as we plan. You need a Plan B. Think how to manage the probability of something occurring and the seriousness of the outcome if it does happen. Even if there’s nothing you can do to prevent something undesirable happening, such as extreme weather, you can plan how to respond if it does happen.

What is changing?

Your plans may well involve change. Will you be doing more of something or less? Will you be doing new things? Whatever you change, you will be affecting the likelihood of certain outcomes. This may be desirable or not. Think it through. It’s amazing how often we all think about step one of a change and forget that that will impact on step two. In business, we usually have risk assessments. These need updating whenever we update our plans. In you personal life, you are unlikely to have anything so formal. However, the principle applies. If you are reviewing anything at this time, think about the positive and negative effects of change.

Want to know more?

Why not read my book, Load the Dice. It’s meant to help you in business and in everyday life. It will help you take control.

The cover of Load The Dice: A Simple Guide To Managing Risks In Small Businesses

The cover of Load The Dice: A Simple Guide To Managing Risks In Small Businesses