YOU ONLY KEEP WHAT YOU CONTINUE TO DESERVE

"A people that values its privileges above its principles soon loses both."

Dwight D. Eisenhower, 34th president of the United States

True whatever your privileges including those you earned as well as those you didn't.

RISK ADVERSE?

"Those who can bear all can dare all."

Marquis de Vauvenargues (1715-1747) 

French moralist/essayist/writer.

We all take risks although the stakes are much higher for some than others.

Don't risk more than you can afford and are willing to lose.

And don't expect unreasonable returns for the risks you do take.

THE PERILS OF UNCERTAINTY

"When we are not sure, we are alive."

Graham Greene (1904-1991) English writer.

The silver lining in an otherwise potentially dark cloud.

Why? Because we are more often not sure than sure.

So what to do?

Accept that is the case and plan accordingly.

REGRETTING NEVER OPENED DOORS

"Footfalls echo in the memory down the passage which we did not take towards the door we never opened into the rose-garden."

T. S. Eliot

Late 19th/20th century American-English poet/playwright

You can't always know which doors open to rose gardens but you will never know if you never open any of them.

YOU GOTTA EARN IT

"Luck is the idol of the idle."

Proverb

Fortunately, the harder you work the "luckier" you will become.

BUT WHAT HAVE YOU DONE?

"Applause waits on success."

Benjamin Franklin

18th century American statesman/scientist/philosopher

Meaning, accomplishment first, reward second.

Which Path Will You Take?

"The path is smooth that leadeth on to danger."

William Shakespeare

16th century British poet/playwright

There are two reasons this could be true.

One, because what's at the end of the path is not all that dangerous.

Two, because what's at the end of the path is dangerous and because it is few take that path.

Which do you think it is?

Making Progress?

"There is safety in reserve, but no attraction."

Jane Austen

18th century English novelist

And in business as well.

You won't have an accident going zero miles per hour.

You also won't get anywhere.

A Voyeur Or Participant Of Progress?

"We love to overlook the boundaries which we do not wish to pass."

Samuel Johnson

18th century British author

The sweet spot in business is being agressive enough to always be moving ahead.

Too agressive and a loss may mean the end of your business.

Not enough and everyone passes you by as though you were standing still.

How's your risk balance?

Close Follower?

"Be not the first by which a new thing is tried, or the last to lay the old aside."

Alexander Pope

17th century English poet

I understand the problems associated with being the "point" on the "arrow", but I think I'll continue to error on the side of too soon versus too late.

At least in business.

You?

Are You Up To It?

"No one would ever have crossed the ocean if he could have gotten off the ship in a storm."

Unknown source

Not only do I think some would but am certain many have, although far from a majority or even a large number.

The truth is most will avoid difficult challenges, particularly when the odds are against them, the consequences of negative outcome severe.

Whether it be a start-up or a new venture within an established entity, what is your appetite for risk?

Making it more personal, will you tell your boss you think she's wrong?

Doubling Down or Investing?

"Money won is twice as sweet as money earned."

Paul Newman in "The Color of Money"

20th century American actor

This movie and Mr. Newman's comment was about gambling and was in no way related to business, but in reality are they all that different (gambling and business)?

Both involve risk and reward with outcomes based more on assumptions than knowns.

And yet many who would never consider gambling will willingly put money into business ventures.

How about you?

Up To And (Occasionally) Across The Line

"Only those who will risk going too far can possibly find out how far they can go."

T.S. Elliot

20th century American-English poet/playwright

In other words, you can't know how far is too far unless you occasionally go there, with the trick being knowing how to come back?

Have you, do you?

How Much Are You Willing To Lay On Which Line?

"No man is worth his salt who is not ready at all times to risk his well-being, to risk his body, to risk his life, in a great cause."

Theodore Roosevelt

26th president of the United States

Fortunately for those of us in business, Mr. Roosevelt was most likely referring to dangerous pursuits such as war, however the thought applies to business just as much.

You have to be ready to commit if you are to win anything of consequence.

Are you?  How great is your cause?

You Can't Win If You Don't Bet

"Who dares for nothing, need hope for nothing."

Johann Friedrich Von Schiller
18th century German historian

Or, nothing ventured nothing gained.

What are you willing to bet in order to achieve your business or career dreams?

Why (We Should) Do What We Do

"Glory ought to be the consequence, not the motive of our actions."

Anonymous

Who among us who comes up with a great idea, does not think a lot about it will mean to us personally?

But note the quote does not say we shouldn't do that, only that the inspiration for the idea should be the good it will do for our department or company.

How are you with that? And if you are a manager, do you care what motivates good ideas?

Betting on Decline: The Eternal Optimist?

"A lot of people become pessimists from financing optimists."

CT Jones

How many successful business managers do you know who were also pessimists?

Consider David Tepper.

Are hedge fund managers who take risky market positions based on assumptions of industry segment and/or company demise, optimists? Or is optimism only associated with positives assumptions?

How optimistic/pessimistic are you as a manager?

Risk/Reward: Striking a Balance

"There is nothing more difficult than to take the lead on the introduction of a new order of things."

Niccolo Machiavelli
16th century Italian Philosopher

In the Army we used to say, never volunteer to take the point.

But if no one does, how do things move ahead? And while those out front may be the first to fall, are they not also the first to arrive if they don't?

Another example of the need to balance risk/reward.

How do you do that?

Risk Management: How Much is Too Much?

"Make the choice adventurous stranger, strike the bell and bide the danger or wonder 'till it drives you mad what would have happened if you had."

C.S. Lewis
Author

My personal philosophy regarding risk results in me doing some things I later regret. But as Lewis said I don't want to one day sit, shawl over shoulders, wondering what would have happened if I only had . . . So far so good; I have regrets for some of it but many more great memories that never would have happened had I not acted.

Fine for a personal philosophy but what about taking risk in business particularly in a public company? How does management decide what is too risky? Is it ever appropriate to "bet the farm"?