Albert Einstein has said that only those who take risks and go far find out how far they can go. As human beings and managers, we differ also by the level we tend to be cautious or tend to take risks. The truth must be said, we are even more complicated: I can say for myself, and for some close people who I know, that on some issues we are careful and others, take risks; so it is also a matter of issue, not only person.
In work, whether we wish or not, we are exposed to risks: We start selling something that seems "sure", but the market changes; we start developing a project and we have no guarantee that we end it in tine, cost or quality we planned, or be even sure that we reach its ending point. We work with a staff of employees, and someone decides to leave; we receive a large order for monthly service from a customer (working by hours), to find out a few months later that the customer does not have the time and we cannot work even close to the capacity (and income) we counted on. The list is endless. Everybody in work is exposed to risks, managers and workers, but there is a different: We as managers have to take carry the burden. We have to be responsible to the organization, to work, to workers, and to ourselves.
I can say for myself, that at work I tend not to take risks, as far as I can control it. No matter what I do, I know many surprises come with life without me asking, and as I carry the burden also for others, I tend to be cautious. Situations in which I may take risks are those where the main one to loose is me, and not the employees or customers. I know that with risks come opportunities and chances for success, but I hate it as I it means I am to risk other people. That is why I am not built to any start-up; there you must think risk-wise.
Yet, there always are and will be risks, some tips I can share from my own experience:
First, scatter the risks; do not put all eggs in one basket. Prefer several small customers among one big one. I remember, since I was a young girl, a working place, which I was exposed to, and was dependent on one large customer. I remember the day when the connection with this customer came to an ending. When I set up a business, and got my first large customer, it implied a significant growth of my company (from two to five employees). That was the day when I stopped sleeping at night. I started seeking for other customers; I was almost in panic. It took time, almost too much, until I stabilized another large activity, in the same dimensions. The same month, the first big customer collapsed and our work there almost vanished. It is very tempting to work with a significant customer, but we should be sure, that this customer is not 50% of the income, of course not more than that. If the company grows larger, the percentage has to decrease. The same goes for other risks: It is better to have a few small projects than one large one, several products, etc. See what is happening for example with the Crocks company (who sold shoes, until people got tired of them, with on real reason at all).
The risks should be managed, but do not over manage them. We must make priorities what risks we manage, and what we leave out. We must remember that we want to manage and work, not only manage risks about work. We have to decide what the right frequency to manage these risks is. As a rule of thumb, I would say that once a month is a good ratio, but if we are managing a crisis, we manage the risks on a daily basis, or even several times a day, if necessary.
It is important to decide how to manage the risk. As much as it sounds difficult, data and information should be collected, wherever possible, and used in order to manage the risk. Relying on facts and data will help us be more objective and decrease the risk. Sometimes, we think it is not worth seeking, as we probably will not find information or data that will help us anyhow. Yet, it is worthwhile trying. The Business Intelligence is based on involvement of three types: Monitoring (What is happening), analyzing (Why did things happen) and Planning (What can happen in the future). One of the main targets of planning is risk management of the future. It turns, that most of the best performance organizations manage their risks, and do so using Business Intelligence (BI).
However, as we all know, life is more than quantified numbers. It consists of many qualified, intangible facts and assumptions. We have to use other management mechanisms, above the BI ones, in order to decide upon the level of the risk (how likely is it to occur); upon its severity (if it indeed occurs); and on ways of preventing the risk or minimizing its impact.
What do I do?
Try hearing other people who naturally see reality, every one from his or her point of view;
Wherever possible, consult someone external, not emotionally involved who can see the big picture;
Finally yet importantly, do not hesitate. At the end of the day, we as managers have to decide; to cut things down. It is our decision as it is our responsibility.
We will fail. I fail in some risk I take, or are forced to manage (because of external influences). Nevertheless, with some I succeed.
At these times, I try to remember that after all, only those who take risks and go far find out how far they can go.
I wish us all to succeed wherever we are, and specifically, to succeed in managing our risks and failing less.
Yours,
Moria
In work, whether we wish or not, we are exposed to risks: We start selling something that seems "sure", but the market changes; we start developing a project and we have no guarantee that we end it in tine, cost or quality we planned, or be even sure that we reach its ending point. We work with a staff of employees, and someone decides to leave; we receive a large order for monthly service from a customer (working by hours), to find out a few months later that the customer does not have the time and we cannot work even close to the capacity (and income) we counted on. The list is endless. Everybody in work is exposed to risks, managers and workers, but there is a different: We as managers have to take carry the burden. We have to be responsible to the organization, to work, to workers, and to ourselves.
I can say for myself, that at work I tend not to take risks, as far as I can control it. No matter what I do, I know many surprises come with life without me asking, and as I carry the burden also for others, I tend to be cautious. Situations in which I may take risks are those where the main one to loose is me, and not the employees or customers. I know that with risks come opportunities and chances for success, but I hate it as I it means I am to risk other people. That is why I am not built to any start-up; there you must think risk-wise.
Yet, there always are and will be risks, some tips I can share from my own experience:
First, scatter the risks; do not put all eggs in one basket. Prefer several small customers among one big one. I remember, since I was a young girl, a working place, which I was exposed to, and was dependent on one large customer. I remember the day when the connection with this customer came to an ending. When I set up a business, and got my first large customer, it implied a significant growth of my company (from two to five employees). That was the day when I stopped sleeping at night. I started seeking for other customers; I was almost in panic. It took time, almost too much, until I stabilized another large activity, in the same dimensions. The same month, the first big customer collapsed and our work there almost vanished. It is very tempting to work with a significant customer, but we should be sure, that this customer is not 50% of the income, of course not more than that. If the company grows larger, the percentage has to decrease. The same goes for other risks: It is better to have a few small projects than one large one, several products, etc. See what is happening for example with the Crocks company (who sold shoes, until people got tired of them, with on real reason at all).
The risks should be managed, but do not over manage them. We must make priorities what risks we manage, and what we leave out. We must remember that we want to manage and work, not only manage risks about work. We have to decide what the right frequency to manage these risks is. As a rule of thumb, I would say that once a month is a good ratio, but if we are managing a crisis, we manage the risks on a daily basis, or even several times a day, if necessary.
It is important to decide how to manage the risk. As much as it sounds difficult, data and information should be collected, wherever possible, and used in order to manage the risk. Relying on facts and data will help us be more objective and decrease the risk. Sometimes, we think it is not worth seeking, as we probably will not find information or data that will help us anyhow. Yet, it is worthwhile trying. The Business Intelligence is based on involvement of three types: Monitoring (What is happening), analyzing (Why did things happen) and Planning (What can happen in the future). One of the main targets of planning is risk management of the future. It turns, that most of the best performance organizations manage their risks, and do so using Business Intelligence (BI).
However, as we all know, life is more than quantified numbers. It consists of many qualified, intangible facts and assumptions. We have to use other management mechanisms, above the BI ones, in order to decide upon the level of the risk (how likely is it to occur); upon its severity (if it indeed occurs); and on ways of preventing the risk or minimizing its impact.
What do I do?
Try hearing other people who naturally see reality, every one from his or her point of view;
Wherever possible, consult someone external, not emotionally involved who can see the big picture;
Finally yet importantly, do not hesitate. At the end of the day, we as managers have to decide; to cut things down. It is our decision as it is our responsibility.
We will fail. I fail in some risk I take, or are forced to manage (because of external influences). Nevertheless, with some I succeed.
At these times, I try to remember that after all, only those who take risks and go far find out how far they can go.
I wish us all to succeed wherever we are, and specifically, to succeed in managing our risks and failing less.
Yours,
Moria
2 comments:
Hi
The risk management is important part of any project,you have to know about your project risks,
plastic card printing
شركة رش مبيدات بالرياض
شركة نقل عفش بالرياض
شركة تنظيف موكيت بالرياض
Post a Comment