Member-only story
Effective Executives are Natural Risk Reducers
As a CEO, business owner and entrepreneur, you are responsible for your organization’s overall health, and that means keeping it out of harm’s way. Risk avoidance is therefore a natural, daily function of your role.
This can be a tightrope, of course. On one hand there is a need to foster creativity and on the other mitigate risk. The key to navigating this tension is creating the right business culture within your organization.
Risk
The risks you and your company want to avoid are plentiful. Harvard Business Review identified three broad categories of risk: -
- Preventable risk: These are internal risks that come from employees or managers, and should be addressed and done away with.
- Strategy risk: These are operational risks inherent in every organizational strategy; it’s the natural risk that comes from the attempt to develop and carry out a strategic plan.
- External risk: These are risks that lie outside any realm of our control — the risks stemming from economic shifts, changes in politics, and of course pandemics.
Yet even as an executive who is fully aware of your responsibilities, and who takes careful strides to help ensure every decision mitigates risk to the fullest, you can…
