Risk Is So Easy To Accept

Accepting risk can sometimes seem like the easier path. Driven by tight deadlines, limited resources, or the pressure to innovate, employees and leaders alike may take shortcuts, leading to increased risk. While risk-taking can yield rewards, it often leads to unforeseen problems, especially when it compromises the diligence required to meet job expectations.

Today, we will explore why risk acceptance is prevalent and provide guidance on maintaining diligence in your work to ensure that what is required and expected is consistently delivered under known and controlled risks.

Looking from a broader perspective, Stanford defines risk as “the possibility that the occurrence of an event will adversely affect the achievement of the organization’s objective,” while CFI simplifies it further by defining it as “the probability that actual results will differ from expected results.”

As I mentioned earlier, “Accepting risk can sometimes seem like the easier path.” This statement can be broken down into several key risk points:

• Not installing or updating applications.
• Continuing business as usual without evaluating market changes.
• Not training your team members or yourself.
• Not addressing conflicts.
• Doing nothing might mean accepting all the risks.

Understanding the reasons we increase the risk will support us in starting from the beginning and being more productive, with that, project management methodologies, quality frameworks, and other guidelines highlight rationalized reasons to increase and accept some risks:

• Time Pressure: Tight deadlines can push individuals to take shortcuts or make hasty decisions, leading to increased risk.
• Resource Constraints: Limited resources, such as budget or manpower, can force teams to cut corners to complete tasks, elevating risk levels.
• Overconfidence: Believing too strongly in one's abilities can lead to underestimating potential risks, resulting in poor decision-making.
• Lack of Awareness: Not fully understanding the implications of certain actions can lead to unintentional risk-taking.
• Reward Structures: Sometimes, the incentives in place reward risk-taking behavior, especially when short-term gains are prioritized over long-term stability.

Accepting risk does not make us irresponsible or naive, as long as we do so diligently by:

• Defining what is required and expected in your role clearly. This includes setting specific, measurable, achievable, relevant, and time-bound (SMART) goals.
• Developing a detailed plan, creating breakdown tasks into manageable steps, ensuring that each phase is thoroughly planned and executed with care, including contingency planning for potential risks.
• Implementing regular check-ins and progress reviews to ensure that you are on track and maintaining the required standards. Adjust plans as necessary based on these reviews.
• Engaging with peers, supervisors, or mentors to gain insights and feedback on your work. This can help identify areas for improvement and ensure that you are meeting expectations.
• Continuously updating your knowledge and skills relevant to your field. This helps you understand potential risks better and equips you to handle them effectively.
• Leveraging tools, risk assessment software, and other technologies and processes that can aid in maintaining diligence, categorizing, and minimizing risks.
• Encouraging a workplace culture where accountability is valued. This means taking responsibility for your actions and their outcomes and encouraging others to do the same.

While accepting risk without evaluating impacts, it seems easier in the short term, but it often leads to long-term challenges and failures. Maintaining diligence in your work is crucial to ensuring that what is required and expected is consistently delivered. Embracing the practices shared in this post not only leads to better outcomes but also builds a reputation for dependability and excellence in your professional endeavors.

Be alert, be persistent, and always be kind.

Happy #fridaynotes

Edited by: Eduarda Martinhago de Oliveira