The main factor of dealing with risk is between accepting or avoiding it, and this can be determined mostly by the traditional way by following the cost & benefits rule.
However, also the true judgement can be realized as a difference between short term and long term goals.
In the beginning, I would like to address different strategies that businesses can choose.
Let's understand them first.
Tortoise strategy where if the company recognize any risk, immediately that will be avoided by Scallop, same as tortoises do when there are risks in it is the environment.
On another side, and in the opposed direction there are what I call a Honey badger strategy, in this strategy companies, can accepting a wiled range of risks, and no fear of any things, the same as the wild animal Honey badger does.
Nevertheless, these two strategies cannot be employed at all times or cannot be adopted as a business philosophy.
There must be a change in some Circumstances, in the purpose of achieving great results or maintaining a certain level of profitability.
Accordingly, accepting risks or avoiding risks can be changed as the strategy changed too.
Turtles might lose an opportunity to achieve their goals if they authorized always to be isolated.
For the companies that always think only in the short term by avoiding risks can be a wonderful solution, to prevent losing based only on the golden rule of (costs and benefits).
However, there must be another kind of consideration in the long term, even if there are costs that must be paid.
An example of this accepting a special request from the customer that will not provide the desirable profits, but this might provide another aspect like motivating other customers to contact them and make a new arrangement by making your brand a wielding known first.
Also, in returning the considerably aggressive strategy in my suppose, the Honey badger strategy, I suggest that in some cases companies have to be aware of the risks that are in the market atmosphere and employ some techniques such as a SWOT Analysis and PESTEL Analysis.
And what I noticing that the environment is shifting instantly and this shifting is occurring in an acceleration manner especially the changes in the technical elements, for instance, Artificial Intelligence utilisation and Machine Learning adoption.
Accelerated evolution
I suggest for who would like to improve his/ her skills and have an intention for understanding business management in an acceleration environment to read a book named ( Thank You for Being Late ), for the author Thomas Friedman, where he says how companies have to deal with the acceleration development in our world to stop being in gaps.
In my words to accepting risks that can be harmful to your business without preparation.
Eventually, I would like to say:
A reasonable law for life and work:
Don’t rush, but don’t wait.
Deliberate strategy.
Same as mountain hikers do, choosing the place and packaging good bags as well as watching where the hock has to go at special moments.
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