In business, confidence and risk tolerance are liabilities. No leader can have sufficient insight into the future to be able to make an optimal decision about everything every time. Nobody can see around corners without fail.
Handled erroneously, the lack of calculated risk-taking can be lethal. It may result in overexpansion, profit, and revenue stagnation, failing to interpret signs in the marketplace and competitive positions and inadequate allocation capital to the right organizational pursuits.
Choices established on flimsy data and made on impulse can be hazardous. The better strategy is to assume calculated risks, work on a clear vision, put contingency plans in place, and be prepared to tackle tomorrow’s problems.
A prudent businessperson looks to achieve a healthy appetite for risks and contingency management to gain the confidence to weather business volatility and steer through tough times.