Much of what I read about how we manage risk assumes it is a logical activity.  And, of course, some of it is but we ignore the influence of our values and our emotions at our peril.

I spend my days working alongside business owners growing their business, and how they perceive and assess risk varies widely – even when they are facing the same risk.  

Two things stand out – how they perceive the scale of the upside or downside, and their assessment of whether they can live with the downside.  Our values, beliefs and attitudes construct a view of the world and our place in it, which will drive our decision-making and combine into what we describe as our mind-set.

Carol Dweck[1] speaks of two mind-sets emerging – fixed and growth.    I believe most of us will fluctuate somewhere along the continuum between the two, rather that be anchored at either end.

Leaning towards fixed suggests fear of failure, and reluctance to change will push you to resist and over-emphasise what is a risk and its downside.  You will also doubt your ability to cope with any negative consequences, as they strike right at the heart of your need to be perfect. 

A more growth-oriented mind-set tends towards challenge.  Risk is not to be feared and you can cope with failure.  Set-backs are not devastating but used to reflect and re-define the next stage of action.

So how does your mind-set influence your approach to risk assessment?  Are you a worrier or a warrior?  Or just growing into your next challenge?