Evaluating Risk for Growth

When we hear the word “risk,” our minds often jump to negative connotations: failure, loss, danger. It’s easy to perceive risk as something to be avoided at all costs. The truth is, risk isn't just about potential downsides; it's often an opportunity disguised as a challenge. It’s the catalyst for innovation, personal development, and organizational advancement.

It’s also important to recognize that decisions involving risk don't happen in a vacuum. As Terveer pointed out, we need to consider the "trickle down effect" of our choices. But there’s also a "trickle up emotional effect," as Erik Gill added. If a leader implements a big change without considering its impact on the team, it can lead to feelings of resentment or doubt. Understanding that risks impact everyone involved, from frontline workers to leadership, is crucial for a holistic risk assessment.

When faced with a decision involving risk, the first step is to thoughtfully consider its potential fallout. Terveer’s advice here was spot-on, stating "...one really important thing for me is looking at [things] like the impact on people and how it's going to, uh, what's that trickle down effect going to be? How is this going to affect, you know, the team or the people that are like doing the frontline work, um, and the business as a whole as well." This means weighing the potential reward against the risk, not just in terms of financial gain, but also in terms of employee morale, productivity, and long-term organizational health.

Team Support as a Safety Net

One of the most critical elements in successful risk assessment is recognizing the power of your team support system. Terveer emphasized the importance of “...making sure that we have the right people to help.”  

Knowing that you have support and that mistakes won’t lead to irreversible consequences empowers you to take that “next step.” When reflecting on major career decisions involving taking risks, Terveer stressed that her readiness stemmed from knowing she had the right team support.  

This dependable network meant that instead of facing outright failure, she could rely on her team to help her adapt and adjust, significantly boosting her workplace confidence in tackling new challenges. This prevents a setback from becoming a complete failure, ensuring that challenges are met with solutions rather than abandonment.

When new risks or changes emerge, it's completely natural for people to feel anxious. Terveer, who identifies as a "very slow processor," deeply understands this reaction. Her strategy involves acknowledging and validating these feelings, clearly stating, "This is a risk, it is a change, and we will need to adjust."

Providing your team with the opportunity to process and voice their concerns is crucial for effectively managing change. This approach promotes empathy and builds trust, making individuals more open to navigating the unknown.

Navigating Hesitation and Building Confidence

Overcoming the initial fear of the unknown is a significant hurdle when evaluating risk. How do we encourage ourselves and our teams to step forward, even when uncertainty looms large? It often starts with communication and a clear understanding of potential outcomes.  

Many people hesitate to take risks because they imagine the worst possible outcome. To counteract this, open conversations are key. Terveer encouraged us to ask, "Where are you at? And what are your concerns? And let's talk about them. Let's talk about what is the actual, like, worst case scenario?"  

She shared a great example of a new team member taking their first phone call - a seemingly small but terrifying risk for them. Her reassurance was simple: "You can't break anything on this…the worst case scenario is that we have to have somebody call them back and give them [a] different direction or something. Like, you can't break it and we're going to help you through it." This direct approach helps individuals realize that many perceived "failures" are, in fact, fixable and not as dire as they imagine.

Not every risk will yield a perfect outcome, and that's okay. In fact, some of the best learning experiences come from challenges that didn't go as planned. Both successful ventures and unexpected detours can build invaluable insight and resilience.  

Gaining Confidence Through Experience

Sometimes, the greatest leaps in workplace confidence come from being thrown into the deep end. Terveer’s experience as a new manager tasked with implementing a new program is a perfect example.  

Despite having only four months of management experience, this leap of faith, driven by external encouragement, transformed her. She stated, "The one thing that I feel like I really gained was a lot of confidence, because I had to make decisions. I had to be able to move quickly with it."  

This experience demonstrates how consistent, even forced, engagement in decision making can cultivate strong skills and deep self-assurance. It also humbly contrasts with the potential arrogance of those always eager for risk, suggesting that genuine workplace confidence often arises from conquering initial uncertainties.  

When Risks Don't Pan Out

Terveer shared an experience where a career change, initially perceived as a good fit, ultimately wasn't. She found the company's ethical values didn't align with her own, leading to some uncomfortable situations and her eventual departure.  

While disappointing, this wasn't a "failure" in the traditional sense. Instead, it was a valuable learning experience about personal values and the importance of alignment in a professional role. It reinforced that even seemingly “failed” risks offer crucial insights and opportunities for growth.

In our fast-paced society, there’s a strong tendency to focus on immediate results. We often fall prey to short-term anxieties, fearing the instant repercussions of taking risks. However, as Gill wisely pointed out, we must consider the long-term view. He explained that you should think: "What are you going to gain from it? What are the things that are going to happen in six months, a year, two years, three years? What are the drawbacks that could happen in that long, too?"

This long-term perspective connects to the difference between "motivation" and "dedication." You might be motivated to make a risky decision, but true success comes from the dedication to see it through, even when challenges arise.  

Terveer’s experience of being forced into rapid decision making during her program implementation, despite not having immediate support, exemplifies this dedication. The positive outcomes she saw over time cemented her confidence, proving that long-term vision is crucial when evaluating risk.

Empowering Your Risk Journey

Ultimately, navigating the world of risk comes down to a few core principles. By internalizing these things, you can transform your approach to uncertainty, turning potential apprehension into a powerful catalyst for growth and success.  

Trusting Yourself

The most crucial piece of advice when it comes to evaluating risk is simply trusting yourself. As Terveer put it, “...you're the best judge of what's best for you.” This can be a scary concept, but owning this self-trust is fundamental to making decisions that truly align with your goals and well-being.

Risk as Opportunity

Taking risks isn't about courting danger; it's about embracing opportunities for growth and positive change. Effective risk assessment involves considering the impact on all stakeholders, leveraging robust team support, skillfully managing change, and fostering enduring workplace confidence.

The Power of Purposeful Risk-Taking

Evaluating risk isn't about eliminating uncertainty, but about intelligently navigating it. Understanding the impact of your decisions, leveraging strong team support, skillfully managing change, and fostering genuine workplace confidence are all crucial components. By approaching risks with a thoughtful strategy, you transform potential obstacles into powerful opportunities for growth, both personally and professionally.

At Principle Choice Solutions, we believe that empowering individuals and organizations to confidently embrace calculated risks is essential for innovation and sustained success. We're dedicated to providing the insights and strategies you need to thrive in an ever-evolving landscape. For more in-depth discussions on this and other vital workplace topics, listen to the rest of The Principle Choice podcast!