Risk is exposing yourself to danger or loss through action or decision. Most people are risk averse—we don’t like risk in general because we don’t like the possibility of danger or loss. A few people love risk. It energizes them. A leader must accept some level of risk if he is to lead. To innovate, to explore new ideas, to find success along unexpected paths involves risk. The invention of the airplane, landing on the moon, heart transplant surgery, smart phones, winning the Gulf War, the Olympic games—every significant human endeavor would not have happened without people taking risks. Research shows that leaders who takes risks are likely to be viewed more positively by employees whether or not they succeed.[1]
Risk-taking is not a talent or innate character trait. Rather, risking is a skill that can be learned and developed. We sometimes refer to taking calculated risks. This is the leader’s ability to weigh the various possible outcomes and factors involved in a decision and move forward in those areas of risk where a positive result will be greater than the negatives of failure.
The knowledge of risk. The most rudimentary risk-taking is trial and error. In this there is little risk, but great education. As our knowledge about the risk grows we move into the realm of the educated guess. Knowledge about a problem doesn’t necessarily remove risk, but it may improve our probability of success. As you gain experience in taking risk, your understanding grows. You know what you are risking—the cost of risk—and the possible reward. A good risk-taker can weigh these two elements and determine where to risk so that the chance for success is greater. This is the skill of risk-taking—knowing where and how to risk. The reward is increased confidence, more opportunities and ultimately success.
Alex Honnold’s death-defying ascent of the sheer rock face of El Capitan is detailed in the movie Free Solo.
There is also a certain resilience developed in consistent risk-taking. A person who fails on occasion but continues to risk knows that success is ultimately found in pushing forward to try again. Risk, to some degree, is about understanding and managing fear. When we look at something risky, we fear a negative result, and what might happen to us. Mountain climber Alex Honnold’s story is detailed in the movie Free Solo. He ascended the 3,000-foot sheer face of El Capitan without a rope, widely celebrated as one of the most dangerous and greatest athletic feats of any kind. One mistake, and he would have fallen to his death.[2] Honnold said, “I've done a lot of thinking about fear. For me the crucial question is not how to climb without fear—that's impossible—but how to deal with it when it creeps into your nerve endings.” To conquer his fear, Honnold ascended the mountain dozens of times by rope. He noted and memorized every move, every hand- and foot-hold. By the time he risked the climb without a rope, he was working from memory, knowing every inch of what was ahead. That knowledge overwhelmed his fear.[3]
The beginning of risk. Perhaps the biggest hurdle in learning how to risk is to begin. Most leaders fall into comfortable patterns of work. Even in decision-making a leader will shy away from areas where they do not have previous experience or a set of defined standards to mitigate risk. Leadership begins by taking an active role in directing our own lives and work. Think about the difference in feeling between driving a car, and riding in the passenger seat. Both seats arrive at the destination, but the passenger is merely playing a supporting a supporting role. The driver initiates—he starts the car, puts it in gear, steps on the gas, turns the wheel.
The Bible is filled with stories of people who set out into risky situations in obedience to God. Think about the disciple Peter, sitting in a boat during a storm, where he sees Jesus walking on the water. Jesus tells him, “Come”. What does Peter do? “So Peter got out of the boat and walked on the water and came to Jesus” (Matthew 14:29). Peter moves, get’s up, steps out of the boat, and starts walking. The beginning of risk always involves motion of some kind. To risk is to try something new, break a pattern, take a different path, make a commitment without all the parameters set, change your mind or trust someone for the first time.
Honnold may be 2,000 feet up and literally hanging on for his life, but he exudes a serene calm like he does not have a care in the world, and knows exactly what he is doing.
The result of risk. The greater our comfort level with risk, the more we are able to step out in confidence in what we say and do. This is especially important in growing our faith. Of risk, Scripture tells us, “Trust in the Lord with all your heart, and do not lean on your own understanding” (Proverbs 3:5). When we risk in life and faith, we are growing our trust in God. And when we trust in God fully, leaning on His experience and ways, we can move forward without fear, in confidence that we are doing what God has desired, regardless of the outcome.
The result of risk for a leader is that the more we risk, the less it becomes a focus. Risk is simply a factor in series of actions that you are taking. And you are taking those actions because you have a destination, a goal you are reach toward. Mountain climber Alex Honnold describes it: “I’m not thinking about anything when I'm climbing, which is part of the appeal. I’m focused on executing what’s in front of me. You’re not controlling your fear. You’re stepping outside of it. It’s about being a warrior… This is your path, and you will pursue it with excellence. You face your fear because your goal demands it.”[4]
[1] https://doi.org/10.1371/journal.pone.0228672
[2] https://gripped.com/profiles/free-soloing-for-profit-a-professors-take-on-solo-climbing-culture/
[3] https://www.thelastthingisee.com/2018/10/free-solo-2018-movie-review.html
[4] https://kidadl.com/quotes/best-alex-honnold-quotes-from-the-infamous-free-solo-climber
A leader must learn how to manage, and if possible, entirely avoid debt. We carry as US consumers a total of $17.06 trillion in debt. We owe on credit cards, mortgages, home equity lines, auto loans, student loans, personal loans and medical debt.