Taking a Look at Risk
The word 'risk' brings to mind so many different things. Sometimes we associate it with finances: we hear about risk management, or we say that something is a risky venture. Other times we associate it with danger, such as when someone is risking their life or taking a health risk. Risk implies either gain or loss: people take a risk and worry about losing money, a reputation, or possibly a job; or they hope taking a risk results in gaining freedom, an improved situation, more fulfillment, or more money or status.
For some people flying on an airplane is a risk, while for others skydiving out of an airplane is a risk, and for yet others neither of those is perceived as a risk. The more I thought about risk, the more individualized risk became. Are there any things we can all agree are risky? Perhaps. But our choice to take a risk probably does vary depending on our situation. To use the airplane example, I would find it extremely risky to skydive, but someone who does that for a living may find little or no risk at all. Each person determines the level and intensity of risk based on their unique situation.
It is interesting to me how people define risk. In working with clients, particularly those who want to make a career change, I always have them consider the financial implications. Usually, a change in a client's job or work situation impacts income, which thereby has an impact on their lifestyle as well as their immediate family. Some people are fine with $5,000 in savings while others need $50,000 before they feel 'secure.' Here is where we really need to look at the numbers. We look at the change the client wants to make, the cost of the change, the overall financial impact of their decision, and how long the client can go without earning money. Sometimes people have the finances, but perceive risk because something in the present or future may be jeopardized. Risk seems to be a highly subjective phenomenon.
It may be that risk is defined as "any time there is uncertainty." When we are making a change in our career, relationships, or location, there is usually something that is unknown. It may be that we are concerned about working with a new boss, or whether the responsibilities of a new position will be too challenging or not challenging enough. We may worry about whether a new relationship will last, or whether a move away from the city will make us feel isolated. How do we know whether these questions are just negative self talk that we want to dismiss, or important objective aspects of a decision that need to be considered? Is the risk dependent on the facts, or is it dependent on our level of discomfort regarding the perceived consequences if we make the wrong choice?
Risks can be purely emotional. Do we tell our friend, boss, or significant other how we feel, or do we fear how they will react? Do we feel safe sharing our views, or do we worry about creating conflict or hurting someone's feelings? Do we just have that 'lucky feeling,' believe that an idea is good and go for it, or hesitate? How much do we trust our intuition?
Here is where we need to find balance. Some people take risks purely on emotion, without looking at the reality of their situation very closely, only to find out several months down the road that they could not support the venture they started, or had no basis for their decision other than a gut feeling. Alternatively, there are people who have all their finances in order, have taken their family and life situation into account, and have concluded that the facts support their decision, but the least bit of uncertainty keeps them in their current unsatisfying situation.
An evaluation of risk may involve analyzing the tradeoff between gain and loss. We need to identify whether there is a real loss, or only a perceived loss. This brings to mind a client I have been working for the past fifteen months. Our work together was focused on her desire to start a business. She was attending a training program while working full time, and part of the program requirement was to start her business and work with clients. Her current job, which she had started a few months before we began to work together, allowed her to be in contact with many people. She also had many connections in the community, and was involved in a variety of organizations outside of work.
During our coaching sessions we reviewed business development methods and various marketing tools. She committed to taking action to network and find clients, but didn't seem to be making any progress. We had numerous discussions about what was getting in the way, given her huge network. Her answer was always the same: “ I cannot approach anyone at work, or anyone who might be connected to my work, because my boss would think I was doing my own work on company time." Several times I tested out this assumption to see if she really thought this would jeopardize her job. Was this a real consideration or negative self-talk? She insisted that anything connected to work was not an option for personal networking, and she was very fearful to discuss her new venture at her agency or with her contacts.
Over time, we started to look at whether she would be able to meet her program requirements and graduate. She was clear that this new business was very important to her; she had invested lots of time and money in the training program. There came a point when the school she was attending required that she either drop out, or show significant progress in terms of getting clients. As my client aligned who she was with what she did, she realized that her dream was too important, and she was not willing to let it go. Within a few weeks of her declaring to the school that she wanted to complete the program and make her client goal, she was talking to everyone she knew about her business, and started going to networking groups to share leads and referrals. In short, she made this her priority.
So how did something that had been perceived as so risky change into a reasonable risk? Here is a summary of her answer: “Over time, many things came together for me. I took a look at my accomplishments at work, and I knew that I was a valued employee. I got feedback from the school that I would be competent in my new business. I realized that accomplishing my goal was more important than worrying about my boss.” Was her boss ever a real issue or was it self-doubt?
When this client became clear on what had meaning for her, she was able to focus on that meaning, and therefore put the risk where it belonged, in its proper perspective. This crystallized for me some of the factors that help people to take risks. Being clear on your goals, and clarifying the meaning and importance the goal has for you, is a really important factor. It also can be extremely helpful to have a track record and competence in the new thing you want to do—or to take steps to go out and develop that competence. This tends to give people the confidence they need in order to go forward. My client's boss, to this date, has not mentioned anything about her talking about her business as a being a problem.
To take a risk, at some point you need to leap. There's a beautiful song from Cirque De Soleil, by Josh Groban (see full lyrics at the end of this email) which perfectly encapsulates this idea: "Let me fall/Let me climb/ There's a moment when fear and dreams must collide/ Someone I am/ Is waiting for courage/ The one I want/ The one I will become/ Will catch me." To align who you are to what you do in life there are risks to take. Some are the big life decisions (such as change of career, marriage, buying a house, or financial investments), and some are day-to-day decisions about whether we should speak out, or say no, or “make waves." As a coach, one of my roles is to encourage my clients to go beyond where they think they can go and ensure that there is a net below. They need to know that it is safe to go to the place "where fear and dreams collide."
So what risks have you wanted to take, and what is holding you back? Is your hesitation the true voice of wisdom, or is it negative self-talk? I hope that this E-Series has provoked your thinking.
TIPS
Below are some tips from my clients that have helped them in their evaluation of risk:
Living Dangerously: Navigating The Risk of Everyday Life, by John Ross. Perseus Publishing, 2000.
Risk-Taking for Personal Growth: A Step-By-Step Workbook, by Joseph Ilardo. New Harbinger, 1992.
The Magic of Thinking Big, by David Schwartz. Fireside, 1987.
Lyrics: Let Me Fall (original version)
From Cirque De Soleil
By Josh Groban
Let me fall
Let me climb
There's a moment when fear
And dreams must collide
Someone I am
Is waiting for courage
The one I want
The one I will become
Will catch me
So let me fall
If I must fall
I won't heed your warnings
I won't hear them
Let me fall
If I fall
Though the Phoenix may
Or may not rise
I will dance so freely
Holding on to no one
You can hold me only
If you too will fall
Away from all these
Useless fears and chains
Someone I am
Is waiting for my courage
The one I want
The one I will become
Will catch me
So let me fall
If I must fall
I won't heed your warnings
I won't hear
Let me fall
If I fall
There's no reason
To miss this one chance
This perfect moment
Just let me fall
COPYRIGHT AND PUBLISHER INFORMATION
© Carole Rehbock. All rights reserved worldwide. No part of this publication may be reproduced without express written permission from the publisher.
For some people flying on an airplane is a risk, while for others skydiving out of an airplane is a risk, and for yet others neither of those is perceived as a risk. The more I thought about risk, the more individualized risk became. Are there any things we can all agree are risky? Perhaps. But our choice to take a risk probably does vary depending on our situation. To use the airplane example, I would find it extremely risky to skydive, but someone who does that for a living may find little or no risk at all. Each person determines the level and intensity of risk based on their unique situation.
It is interesting to me how people define risk. In working with clients, particularly those who want to make a career change, I always have them consider the financial implications. Usually, a change in a client's job or work situation impacts income, which thereby has an impact on their lifestyle as well as their immediate family. Some people are fine with $5,000 in savings while others need $50,000 before they feel 'secure.' Here is where we really need to look at the numbers. We look at the change the client wants to make, the cost of the change, the overall financial impact of their decision, and how long the client can go without earning money. Sometimes people have the finances, but perceive risk because something in the present or future may be jeopardized. Risk seems to be a highly subjective phenomenon.
It may be that risk is defined as "any time there is uncertainty." When we are making a change in our career, relationships, or location, there is usually something that is unknown. It may be that we are concerned about working with a new boss, or whether the responsibilities of a new position will be too challenging or not challenging enough. We may worry about whether a new relationship will last, or whether a move away from the city will make us feel isolated. How do we know whether these questions are just negative self talk that we want to dismiss, or important objective aspects of a decision that need to be considered? Is the risk dependent on the facts, or is it dependent on our level of discomfort regarding the perceived consequences if we make the wrong choice?
Risks can be purely emotional. Do we tell our friend, boss, or significant other how we feel, or do we fear how they will react? Do we feel safe sharing our views, or do we worry about creating conflict or hurting someone's feelings? Do we just have that 'lucky feeling,' believe that an idea is good and go for it, or hesitate? How much do we trust our intuition?
Here is where we need to find balance. Some people take risks purely on emotion, without looking at the reality of their situation very closely, only to find out several months down the road that they could not support the venture they started, or had no basis for their decision other than a gut feeling. Alternatively, there are people who have all their finances in order, have taken their family and life situation into account, and have concluded that the facts support their decision, but the least bit of uncertainty keeps them in their current unsatisfying situation.
An evaluation of risk may involve analyzing the tradeoff between gain and loss. We need to identify whether there is a real loss, or only a perceived loss. This brings to mind a client I have been working for the past fifteen months. Our work together was focused on her desire to start a business. She was attending a training program while working full time, and part of the program requirement was to start her business and work with clients. Her current job, which she had started a few months before we began to work together, allowed her to be in contact with many people. She also had many connections in the community, and was involved in a variety of organizations outside of work.
During our coaching sessions we reviewed business development methods and various marketing tools. She committed to taking action to network and find clients, but didn't seem to be making any progress. We had numerous discussions about what was getting in the way, given her huge network. Her answer was always the same: “ I cannot approach anyone at work, or anyone who might be connected to my work, because my boss would think I was doing my own work on company time." Several times I tested out this assumption to see if she really thought this would jeopardize her job. Was this a real consideration or negative self-talk? She insisted that anything connected to work was not an option for personal networking, and she was very fearful to discuss her new venture at her agency or with her contacts.
Over time, we started to look at whether she would be able to meet her program requirements and graduate. She was clear that this new business was very important to her; she had invested lots of time and money in the training program. There came a point when the school she was attending required that she either drop out, or show significant progress in terms of getting clients. As my client aligned who she was with what she did, she realized that her dream was too important, and she was not willing to let it go. Within a few weeks of her declaring to the school that she wanted to complete the program and make her client goal, she was talking to everyone she knew about her business, and started going to networking groups to share leads and referrals. In short, she made this her priority.
So how did something that had been perceived as so risky change into a reasonable risk? Here is a summary of her answer: “Over time, many things came together for me. I took a look at my accomplishments at work, and I knew that I was a valued employee. I got feedback from the school that I would be competent in my new business. I realized that accomplishing my goal was more important than worrying about my boss.” Was her boss ever a real issue or was it self-doubt?
When this client became clear on what had meaning for her, she was able to focus on that meaning, and therefore put the risk where it belonged, in its proper perspective. This crystallized for me some of the factors that help people to take risks. Being clear on your goals, and clarifying the meaning and importance the goal has for you, is a really important factor. It also can be extremely helpful to have a track record and competence in the new thing you want to do—or to take steps to go out and develop that competence. This tends to give people the confidence they need in order to go forward. My client's boss, to this date, has not mentioned anything about her talking about her business as a being a problem.
To take a risk, at some point you need to leap. There's a beautiful song from Cirque De Soleil, by Josh Groban (see full lyrics at the end of this email) which perfectly encapsulates this idea: "Let me fall/Let me climb/ There's a moment when fear and dreams must collide/ Someone I am/ Is waiting for courage/ The one I want/ The one I will become/ Will catch me." To align who you are to what you do in life there are risks to take. Some are the big life decisions (such as change of career, marriage, buying a house, or financial investments), and some are day-to-day decisions about whether we should speak out, or say no, or “make waves." As a coach, one of my roles is to encourage my clients to go beyond where they think they can go and ensure that there is a net below. They need to know that it is safe to go to the place "where fear and dreams collide."
So what risks have you wanted to take, and what is holding you back? Is your hesitation the true voice of wisdom, or is it negative self-talk? I hope that this E-Series has provoked your thinking.
TIPS
Below are some tips from my clients that have helped them in their evaluation of risk:
- Get factual advice from financial planners, lawyers, realtors or other experts who can help assess the risk.
- If you can do a trial run, test the waters; take your time before you go all the way. For example, spend time in an area prior to moving, or work on your new venture while keeping your existing job.
- Just do it! Give yourself a time limit for all the analysis or it will become a 'gremlin' or 'monkey mind' ( negative self talk) conversation.
- As always, find support and encouragement. Surround yourself with people who are committed to being supportive of your process.
- Balance emotional, financial and health considerations. Know your priorities and what will keep you aligned with who you are and what you do.
- Look at your fears and concerns and see the truth of the situation. Become familiar with your own style: know that for many people it is easy to find reasons not to go forward.
- Think through the worst case scenarios. Evaluate the worst thing that could happen if you did take the risk, and the worst thing that could happen if you didn't.
- Know your tolerance for risk and have clear criteria for making a decision.
Living Dangerously: Navigating The Risk of Everyday Life, by John Ross. Perseus Publishing, 2000.
Risk-Taking for Personal Growth: A Step-By-Step Workbook, by Joseph Ilardo. New Harbinger, 1992.
The Magic of Thinking Big, by David Schwartz. Fireside, 1987.
Lyrics: Let Me Fall (original version)
From Cirque De Soleil
By Josh Groban
Let me fall
Let me climb
There's a moment when fear
And dreams must collide
Someone I am
Is waiting for courage
The one I want
The one I will become
Will catch me
So let me fall
If I must fall
I won't heed your warnings
I won't hear them
Let me fall
If I fall
Though the Phoenix may
Or may not rise
I will dance so freely
Holding on to no one
You can hold me only
If you too will fall
Away from all these
Useless fears and chains
Someone I am
Is waiting for my courage
The one I want
The one I will become
Will catch me
So let me fall
If I must fall
I won't heed your warnings
I won't hear
Let me fall
If I fall
There's no reason
To miss this one chance
This perfect moment
Just let me fall
COPYRIGHT AND PUBLISHER INFORMATION
© Carole Rehbock. All rights reserved worldwide. No part of this publication may be reproduced without express written permission from the publisher.
