Communicating Risk

When we communicate a vision, idea, dream or opportunity we focus on the upside and the downside, the probabilities and the mitigation. This is the way it makes sense to us. Our experience of risk is mostly theoretical. We are already bought into our own dream. We have accepted the cost and sacrifice that comes with that.

Getting you to buy into this idea will mitigate my risk. From my perspective, it’s a no brainer. It tends to come across that way.

For the person I’m trying to convince it’s not that simple. I tend not to take into account their risk threshold. I do not consider their current risk exposure and appetite. I am also asking them to increase their risk to make my changes of loss smaller.

That requires a lot more than financial models and risk management.

It requires trust.

Lubo Minar

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