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What risk is higher than risk appetite of the organization?

Updated: 9/24/2023
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Q: What risk is higher than risk appetite of the organization?
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Low risk takers implement change that has a minimal impact on the organization?

There are a number of ways to look at this. Those who are high risk takers could be looking at short-term gains, where low risk takers may be more concerned about long-term goals and objectives that increase an organizations longevity, stability, and survivability. Again, high risk takers can often be looking at personal interests rather than organizational interests. In other words, at times you have individuals who are new to an organization, or new to a particular position within the organization. Therefore, they may feel compelled to take a high risk to show they are making a positive difference and to leave their mark (so to speak). However, many times what pops up from this type of thinking is the law of unintended circumstances, and negative results arise where the organization is hurt as well as the employees. I'm am not saying this always occurs, and not fostering the notion that a high risk taker is a bad risk taker. Still, this is why organizations need to consider skilled project management personnel, and those who are good critical thinkers as well as skilled in the area of risk management. There are always risks if you want to gain and keep the competitive edge. The question is, is it a reasonable risk?


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