Figure 2-1 lists some types of risks that businesses should think about. Now
that we’ve got you uptight about risk, don’t worry: In this chapter, we also
lead you through some ways to deal with these risks. Thinking about them
may seem like courting failure, but it is in fact one of the best ways to improve
your chances of success.Although some of the risks illustrated in Figure 2-1 might be considered nega-
tive, keep in mind that some risks can also result from success. You could
have a product launch where demand is much greater than anticipated. Your
founder may be a great entrepreneur and company starter, but not have the
skills to keep the company growing at that initial pace (partly because the
best starters of companies are so good at starting things that they are not
very excited about keeping them going; they start itching to start something
else). Just as both positive and negative events produce stress in our lives
(for example, weddings and new babies are positive events, but undeniably
stressful), so business success can bring stress and associated risks as well.
The risks of success must also be taken into account in order to protect value
in the present and create value in the future.You have likely heard the sayings, “no risk — no return” or “nothing ventured,
nothing gained.” Taking smart risks is part of being a successful business-
person. Rather than not taking risks, systematically cataloging, evaluating
and managing your risks, as we discuss in this chapter, can be thought of as
helping you to take the rightrisks, the ones most likely to pay off. Furthermore,
rather than running around and gathering information about allyour risks —
which is difficult to manage and keep updated — technology can help you
out by monitoring and reporting on the risks you want to manage closely.Figure 2-1:
Classes
of risk.