Risk Taking in Business
When I think of the word risk I think of daredevils, rebellious teens and getting into something you just might regret and according to the Business Dictionary they define risk as a “probability or threat of damage, injury, liability, loss or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.”(Home,2014) We’ve been taught throughout our lives that those daredevils and rebellious teens were bad, but who’s to say they just weren’t risk takers. Risk taking is something you have to do in order to make a profitable and successful business, just look at some of the most successful businesses out there today they didn’t get there not taking risk.
I’ve come to realize with all my research there are good and bad risk and understanding the thin line between the two could mean the difference between a smart business decision and unwise mistake. Taking risk is not something to do lightly it takes calculated reasoning and beneficial risks require careful planning. Bad risk tends to be a product of thoughtlessness. Fortunately, most CEOs and business owners wouldn't have arrived at their current position if they regularly made the latter type of decisions. (Hendricks, 2014)
So I wonder what is a good risk? And I found it is the product of assessing needs, identifying areas that need improvement, formulating strategic plans and executing initiatives while anticipating mistakes. It seems all successful business owners must learn the art of taking calculated risks. I’ve come to realize the practice may not come naturally, but it's essential for progress and longevity. So how much risk would I’d be willing to take? Well, I think about the risk I am taking now by taking this class online instead of a classroom. I’m taking a risk that I will be able to manage my time