All decisions involve risk

All decisions involve risk

Whether it's choosing a new AMS or introducing a new product or service, every decision you make involves risk.

There are two factors to risk: likelihood (probability of something bad happening) and seriousness.

To illustrate: the likelihood of a plane crash is exceedingly small, but clearly, its seriousness is very high. On the flip side, the likelihood of a traffic jam in the DC area at rush hour (pre-covid!) is high but the seriousness of being late for something is typically low.

In the case of choosing an AMS, depending on the process used, the likelihood of complete failure is probably pretty low, but the seriousness of total failure (time and money) is pretty high. So you want to be sure you have a time-tested process for ensuring you're making the right decision.

So when making any decision, consider the risk involved and the likelihood and seriousness of that risk coming to fruition. If both likelihood and seriousness are high, it may not be a risk you want to take. But if the likelihood is low and/or seriousness is low, you may proceed cautiously!

Wes's Wednesday Wisdom Archives

Motion vs. Action

February 14, 2019

In James Clear’s book Atomic Habits (I recommend it!), he discusses the concept of motion vs. action. […]

Are You Answering Your Calls?

February 7, 2019

I’ve written about this before, but apparently I have to keep repeating it. If you’ve […]

Who do you trust?

January 31, 2019

Who Do You Trust I was reading an article recently about Warren Buffet’s “rules” for […]

Set benchmarks to measure progress

January 24, 2019

It’s impossible to measure progress if you don’t know your starting point. This sounds axiomatic, […]

You’ll make incorrect decisions. Acknowledge them and fix it.

January 17, 2019

A client of mine recently wrote the following to me: “It’s so hard to set […]

"Experience is unobservable to everyone except the person who it happens to."

January 10, 2019

In Dan Gilbert’s book Stumbling on Happiness, he writes: “Experience is unobservable to everyone except […]

Know Your Audience Before You Speak

December 20, 2018

This one may seem obvious, but when you’re speaking to anyone, whether it’s one person, […]

"Behavior is a function of the person in their environment."

December 13, 2018

Lewin’s equation says “behavior is a function of the person in their environment.” (He was […]

Signal-to-noise ratio

December 5, 2018

Signal-to-noise ratio Signal-to-noise ratio, formally used, applies to electricity and engineering, and refers to how […]

Consultants bring perspective

November 28, 2018

Consultants bring perspective At a recent speaking engagement, I was asked what I think is […]

Scroll to Top