No Bullsh!t Leadership Moment 134. The Indispensable Value Of a Risk Mindset
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Aug 17, 2025 Explore the importance of cultivating a risk mindset for effective leadership. Learn how understanding risk can protect value and enhance decision-making in operations and investments. The discussion cautions against optimism bias and emphasizes proactive risk assessments. Discover the 80/20 approach to risk mitigation, ensuring you focus on what truly matters. This insightful conversation will help leaders avoid being blindsided by unforeseen challenges.
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Risk Protects Value
- Risk is exposure to possible loss and combines likelihood with consequence.
- In business, risk management exists to protect value by identifying what matters most.
Prioritise Risk Mitigation 80/20
- Use the Pareto Principle to prioritise risk mitigation and avoid wasting resources on low-value fixes.
- Focus effort where it reduces the most severe or likely risks rather than trying to eliminate everything.
Three Questions To Assess Risk
- Ask: what could go wrong, how likely is it, and how big a deal would it be to identify risks quickly.
- Use those answers to decide how much attention and resources each risk deserves.