This specific Management Insight is based on risk taking ability in an organizational environment. The insights and learnings from different domains such as Logistics, Space Science, Disaster Management, Banking, Healthcare and Software with their respective leaders are provided in this Management Insight.
According to FedEx CEO, Risk Taking is about Execution; whether we will be able to execute or not is more important. Risk Taking also has to think about the “Volume Growth Rate”. At the same time, risk taking should not effect the foundation. Risk taking can be considered it the opportunity is significant. Risk taking should not effect the Organizational Culture in a negative way.
According to NASA Kennedy Space Center, Risk taking should not effect the Safety; and the decision making should support the Mission. Risk should be taken only once; We have Informed Solution in hand. For risk taking enormous analysis is required. Ensuring the safety of the mission and Taking the Appropriate Risk makes the impossible Possible.
According to National Institute of Disaster Management, Government of India, with needed preparation risk can be taken. Risk taking should support the Prevention and Preparedness. Risk taking should reduce the probability of occurrence of the risk/disaster. Risk taking should develop the Methods of Prevention.
According to RBI Governor Shashikant Das, Risk Taking should mitigate the Negative Impact, if any. Risk taking should not result into Contraction of Benefits. Risk taking should result into increased Stakeholder Confidence Level. Risk taking should not result into change in Ownership or Change in Leadership. This is very Important.
According to Dr. Devi Shetty, Renowned Cardiologist, Risk taking should reinvent, should develop disruptive solutions. We should change the System/Organization/Industry before someone is going to change it; this is possible with risk taking ability.
According to Microsoft CEO Satya Nadendla, Risk taking should empower others. Risk taking pre-requisite is having Clear vision. Risk taking should proceed with growth Mindset. At the same time, risk taking should put one in Competitive Position. Take Stock Inventory risk, Marketing risk, try certain things and really go extra mile to know what customer needs. This helps in deciding and developing products what customers need. For taking risk One should have sense of Possibility and Optimism.
Usually anyone takes risk in 3 scenarios. They are 1) either they are looking for Growth; 2) or they are looking for survival; 3) or they are fire-fighting. In these 3 scenarios, one gets ready to take risk in an organizational environment. Also, risk is taken to avoid loss or to make profits or gains. Risk taker should have confidence, awareness of the environment, awareness of possible events, awareness of possible outcomes, losses and benefits. He should be alert till the risk goes away from the radar. To handle risk, one should plan for risk management, identify and note down potential risks, plan risk response strategies much a head of time, and keep monitoring for the risk to happen; and handle the risk when it happens. Risk response strategies vary based on the type of risk. Whether it is positive risk or negative risk.
Positive risk is nothing but the Opportunity. The relevant risk response strategies for positive risk include enhance the risk, exploit the risk or share the risk. Negative risk creates certain loss to the organization. The relevant risk response strategies for the negative risk include avoid it, mitigate it, or transfer it. Accepting the risk is the strategy which can be applied accordingly to both negative and positive risks.
Thus, risk management plays major role in any organizational survival, growth, scalability and sustainability. One must take a risk to protect the sinking ship; One may take a risk for Organizational Survival; One should take a risk in Order to grow the Organization. It depends on our Organizational Condition/Health, based on which One Pursues the Risk; and the Way it is Considered. Sometimes, we may ignore even a Bigger Opportunity, if inherent risk is there for the Organization. Sometimes, we may desperately Pursue a minute/small Opportunity, if we are in need. It all Depends on Individual/Organization Condition/Situation based on Which We Pursue Either the Risk or Opportunity. Sometimes, it also happens that We May Even Try to Attack the Small Risk; ignoring the Bigger Opportunity. This is also Possible in a Completely Involved/Immersed Organizational/Team Environment. Hence, Our Perception on Risk, Characteristic of Risk, Risk Nature, Organizational Condition, Level of Involvement of the Team, The Necessity of Pursuing Risk or Opportunity, all these factors Impact the Way We Pursue Risk.
Best Wishes,
Dr.Goparaju Purna Sudhakar, PhD, PMP
References:
1) https://youtu.be/fj7a7InvEig
2)https://youtu.be/LO2Xd-kZOyg
3)https://youtu.be/amp4kYY_Q4I
4) https://youtu.be/rYCuJ28Bqtk