Turning risk into reward

Collins Concise Dictionary defines risk as: the possibility of incurring misfortune or loss; at risk - to be vulnerable; take or run a risk - proceed in an action without regard to the possibility of the danger involved, to expose to danger or loss, to act in spite of the possibility of injury or loss.

As is evidenced by these pessimistic definitions, society has been conditioned to believe risk is exclusively negative and can only result in loss, injury or damage. We are taught that we should spend our lives avoiding any form of risk at all costs, and anyone who exposes himself to risk is therefore deemed to be negligent and irresponsible. Ironically, almost every achievement and success in the history of humankind - whether in science, medicine, exploration, technology, or the arts - has carried with it a commensurate level of associated risk.

While the formula might not be linear, most often the size of the reward is proportionate to the level of risk you are prepared to take. It is hardly surprising that having being conditioned to be risk-averse, the vast majority of people will never realise their full potential.

How many times did each one of us as children hear the words "don`t", "can`t", "shouldn`t", "mustn`t", instead of "do it", "go for it", or "take a chance"?

In industry and commerce it is essential that a certain level of prudence and diligence prevails when making significant business decisions. In many instances the ideal route for a business to follow in protecting the interests of its shareholders and stakeholders is one that leans toward conservatism rather than liberalism. This, however, should never negate the need for a balanced, and reciprocal amount of sensible risk-taking to ensure the ongoing competitive positioning and agility of a business.

By choosing what they perceive to be the safe route, many people end up leading mediocre, under-achieving lives.

Bryan Hattingh, CEO of leadership solutions group Cycan

Similarly, it is essential that we continually take ourselves out of our comfort zones and confront the fears and risks pertaining to increasing our stature, capabilities, marketability and mobility. In order to do this on a consistent basis, we need to be clear in our minds as to what are the tangible benefits, and to weigh this up against the obstacles, roadblocks and discomforts that we need to endure and overcome to achieve the desired results. For this to be sustainable, our professions, careers, or activities of choice must be such that they energise and impassion us.

Business guru Jack Welch speaks of the four Es of leadership: positive energy, the ability to energise others, the "edge" that enables managers to take unpopular decisions, and the ability to execute decisions. Welch says these are connected with a P for passion: "a heartfelt, deep and authentic excitement about work".

Major historical milestones and human accomplishments have often come about as a result of necessity. Sometimes when people are desperate they are more creative, their obsessions enabling them to take great leaps of faith. When we lack that kind of drive, we usually look at the perceived risks and shortcomings of what we are doing and are put off or discouraged by the possible negative outcomes.

If you were observing someone from a distance who was standing at the edge of a precipice or canyon and you watched them jump over the edge, your immediate thoughts would be that they had committed suicide and were presumably dead. On closure inspection, however, you discover that on the other side of the precipice or edge of the cannon is a wide ledge six feet below from where the person was standing and where they are now seated, calmly enjoying the view of the panorama. Perceptions so quickly become reality and in and through that confine our view and perspective of the bigger picture and what is truly possible.

Furthermore, how many cynics throughout the centuries have been proven wrong by individuals being prepared to take a leap of faith and attempt to achieve the impossible and successfully do so. I am so grateful that Orville and Wilbur Wright did, against significant social mockery and cynicism, so today we can all travel to the corners of the world in a matter of hours.

If you were to study the biographies of most self-made millionaires and independently wealthy people such as Bill Gates and Richard Branson, you would see that they took massive risks. Gates wrote an operating system for a computer he had never seen. His passion and conviction paid off; today his impact on the world is almost immeasurable.

Dar Robinson, the world`s greatest stuntman and stunt coordinator, achieved many firsts. While he had both the athletic ability and the courage to perform breathtaking exploits, he was a master technician who planned and prepared meticulously. Robinson constantly sought ways to take his profession to new levels, amazing producers and audiences alike. In a highly publicised feat, as the stunt double for actor Christopher Plummer in a 1979 film production, Robinson did a 700-foot freefall from a deck on the world`s tallest freestanding structure, the CN Tower in Toronto, Canada. Although he performed incredibly daring feats never attempted by others, during his 19-year career Robinson`s careful execution of well-planned stunts kept him from serious injury. He proved that you can do things that are seemingly reckless if you mitigate the risks properly. The trick is to allow ourselves to think out of the box that our parents and teachers place us in as young children.

Juxtapose this with the example of Evel Knievel who broke every bone in his body by propelling himself on the back of a motorcycle or in a car over ever-increasing distances to set new records. While in many instances he achieved significant milestones, the price he paid can hardly be considered worth it. Similarly in life, whether in business or our personal lives it is important to balance the risks with the benefits of the outcomes.

By choosing what they perceive to be the safe route, many people end up leading mediocre, under-achieving lives. However, this does not mean we should be compelled to be massively successful entrepreneurs, or even great stuntmen. Desiderata, Max Ehrmann`s famous poem and declaration of what is essential to one`s life and how to live peacefully, states it most appositely: "If you compare yourself with others, you may become vain and bitter; for always there will be greater and lesser persons than yourself."

It is important for people to remain true to themselves, and to focus on what is relevant to them, their fears, challenges and passions. Do not allow perceived norms to influence you; remember that social norms are constantly in flux, with each decade bringing new and previously unimagined concepts into our lives.

A good place to start is with how you think and feel about yourself, your life and the world you live in. Think about where you are going and become prescriptive about it so you can move towards your goals. Most people never move forward precisely because they do not crystallise their goals. To achieve your objectives, you must be able to articulate what they are on a daily basis. Be specific - ask questions about how you are going to achieve what you want, so that you can change the way you look at risk and turn it into reward. Once you have identified what you want, go out and get it.