Smart Risk-Taking Definition
This method helps organizations define 'smart risk-taking' to encourage calculated risks and innovation while setting clear boundaries. It moves teams beyond simply 'playing it safe' or making costly mistakes.
Use this method when an organization wants to foster a culture of innovation and calculated risk-taking, but lacks a clear understanding of what constitutes 'smart risk'.
Solves: Risk-averse culture, fear of failure, lack of innovation, costly mistakes due to poorly calculated risks.
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Step 1: Introduce the concept of smart risk-taking and explain why it's important for innovation. (5 min)
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Step 2: Ask participants to individually brainstorm examples of 'smart risks' and 'unacceptable risks' within the organization. (15 min)
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Step 3: Facilitate a discussion where participants share their examples and identify common themes and principles. (20 min)
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Step 4: Work together to create a shared definition of 'smart risk-taking' that incorporates the key principles and boundaries. (10 min)
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Step 5: Document the shared definition and communicate it to all teams within the organization. (5 min)
- Encourage participants to be specific and provide concrete examples.
- Focus on creating a definition that is both clear and empowering.
- Invite an external expert on risk management to share their insights.
- Use case studies to illustrate different types of risks and their potential outcomes.