Risk taking comes in all forms and is in the fabric of our lives and our work; and the decisions that we make either produce rewards or consequences. It's a critical skill for women to have in their professional arsenal.
Years of ingrained social and gender bias along with empirical research using financial returns as a gauge for success, suggests women are prone to be risk averse and that we don’t behave in a manner that is bold or brazen enough when it comes to risky situations.
But we know that is not true and times are changing. 31% of all small businesses are owned by women accounting for over a trillion in sales and while at a snails pace, an increasing number of women have been appointed to high risk roles like Sheryl Sandberg, Mary Barra, Meg Whitman and Indra Nooyi just to name a few. Yes, women have made major headway in recent years.
However, despite this progress women are still perceived as being risk averse. The business world expects leaders to take risks. As women professionals either owning a business, running a company, or climbing a professional ladder; it is critical we develop, increase and fine-tune our risk taking capabilities.
Here are 5 tips to build your tool-box and hone your risk taking skills.
1) Trust in your capabilities to succeed
Risk taking increases when you believe in your capabilities to perform and be successful. You are more willing to become an opportunistic risk taker when you have personal conviction on the long term goal and the confidence that you have the ability to deliver results. Don't second guess yourself. Trust in what you bring to the party.
2) Self promote without apology
Women have been socialized not to brag about their accomplishments as it will dilute their feminity and effectiveness. The more you call attention to your accomplishments and the kinds of thoughtful risks you have taken to achieve them, the more you will be seen and remembered as a leader who has a voice that matters and is worthy of investment. Speak up! Don’t be invisible.
3) Speak risk at every chance
Unfortunately, entrenched societal gender expectations still prevail when it comes to financial risk. A Babson College research study discovered companies with female CEOs received 1.5 billion in VC investment while their male counterparts received 49.3 billion.
The point to remember is the more you can clearly articulate the relationships between the cost benefits and your decisions, the more you will demonstrate your appetite for risk. Investors look for potential in a business to maximize their return on investment. The better you can paint that picture, the higher likelihood you will gain confidence from your future investors. Talk money to get money.
4) Excellence by association -
Build your reputation as a risk taker by engaging with others of a similar mindset. The power of networks and communities will provide the opportunities to learn and promote more conversation on effective risk taking. It will also provide opportunities to be involved in more risk oriented situations. Don’t sit on the sidelines. Get in the action!
5) Risk taking is grey matter -
Get comfortable making decisions in undefined or unclear situations. It will not always turn out perfectly and there may be consequences of your actions, but that is the beauty of being an entrepreneur or diving into something you’ve never done before. Don't be afraid to live in the grey. Own it and see the success.
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