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Everything we do in life involves risk. in our professional lives, trying to avoid risk is itself a risk: work too cautiously, and we risk missing the chance to grow and shine, and our careers may suffer for it.
We cannot avoid risk yet we often avoid thinking about it. That is a shame,because if we think strategically about risk, we can use it to increase our chances of coming through difficult situations with our goals intact, Rather than pretending risk doesn't exist, why not learn to manage it to our own benefit?
The first step: Acknowledge the risks your projects face. Start by writing a list of the things can go wrong. That may sound gloomy, but it's essential, Your list need not be very thorough, and probably never can be. But try to identify common risks-like the departure of a key colleague for new job or the failure of a new technique upon which your project depends, The types of risks you identity will depend on the specifics of your work.
Once you have a list of risks, evaluate each one on two scales:
Likelihood, Force yourself to honestly assess how likely each risk is.
Impact, Then think about how much damage could occur under each situation.
Now it's time to draft a second, more-detailed list, Go back through your initial list and consider how you might make each potential negative outcome less likely to occur, and also how you might minimize the damage to your project if one does happen.In project-management term,this step is known as risk mitigation. A mitigation is anything that makes a risk less likely to spoil your overall goal.
Once you have drafted your list of mitigations. the final step is to go down that list and think about which ones are “worth it", Look at all the information you've gathered about your risks and mitigations, and make a call, about what it makes sense to. do. You probably have more: intuition in this area than you realize, because most of us instinctively do risk-mitigation calculations in the nonwork areas of our lives.For instance, every time you decide whether or not to buy a guarantee on a new electronic toy, you're doing this calculation in your head.
You have probably been intuitively doing some sort of risk analysis in your work life, too. Moving to a more explicit analysis(but one that is more qualitative than quantitative--unless you like to play with numbers)can encourage you to acknowledge when you're making overly optimistic assumptions. And this gives you a better chance to make plans that will withstand the failure of at least a couple of those assumptions.
Bringing your risk analysis out from the field of intuition can also help you overcome a tendency to overly ignore risk, lt is easier to go ahead and take a big risk when you know that you have mitigations in place and a backup plan if things go wrong.
Thinking about risk can be a bit scary, but really, ignoring risk is the riskiest behavior of all.
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