Running a successful business always needs the leader/s to have an entrepreneurial mindset. One of the traits of entrepreneurship is the ability to take risks. Mark Zuckerberg says it best ‘The biggest risk is not taking any risk… In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.’ This is true as companies realize that in order for them to do well and to be successful they need to take calculated risks. So, what are the benefits of taking calculated risks?
- Risk taking is the best teacher
Any successful person, whether an entrepreneur, CEO or actor will tell you that the path to success involves failure. Risk taking, especially when done repeatedly even when calculated, will result in failure. Failure is one of the best teachers as you learn how to think and plan strategically. So, when you fail, learn the most from your mistakes and move on.
- Risk takers are more content with their lives
According to a study from the University of Bonn, Germany most risk-takers are more content with their lives than those who do not take risks. The study was done on 20 000 participants and this was the outcome. Even though the article does not mention why, the assumption is that they have fewer regrets. This is due to the fact that they took advantage of all the opportunities which were available.
- Good risk-takers focus on the ‘Big Picture’
Focusing on risks is, of course, beneficial to you. However, when taking ‘the leap of faith’ you might have major failures that will not make you bounce back. You should focus on making sure that the risk you are taking is beneficial to the final strategic direction of the company, and that it contributes to this direction.
- Risks bring about innovation
No innovation can happen without risk. You have to take risks in order to change behaviors and the way people do things. Innovation is dead without risk-takers as they challenge the status quo and try to introduce new and better ways to do things.
- Risk takers stay ahead
If you take a look at the most successful entrepreneurs you will notice that they are always taking risks in order to do better. They never sit back and become content with what they have achieved. This is because they understand that, to keep ahead of the pack they need to constantly take risks. If not, they know they will become the next Blockbuster, Walkman or MySpace. Therefore, they take become unconventional in order to stay ahead of the pack.
Taking calculated risks is not an easy thing, and there is always the other side which is a failure. But, without risks, we as humans could not have evolved to be where we are now. Risk is essential not only for the individuals’ growth but for organizations as well. You should take ‘calculated’ risks as this will always lead to great benefits. Trying to find better ways of taking risks in recruitment? Click here to find out more.2