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The difference between a risk and a crisis

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One thing to remember from the outset is that a risk is not a crisis. By the time you are faced with a crisis, it is often too late. Your mind is already in reactive mode, and you are already putting out a fire – a risk has materialised. A risk is a potential crisis which has not yet materialised, and which, if not managed adequately, can result in a crisis. The crisis is in the future.

This distinction already makes life a lot easier. When you deal with a risk, your mind is proactive. Your senses, though strained by fear, are calmed by the fact that it has not happened, and your attention is less sidetracked than when you are running an operation to put out a fire. You are more sober and clear-headed.

My advice is, do not allow yourself to be in a position where you are reactive in managing unwanted situations in your business. Try to anticipate danger, deal with it proactively, and avoid being hit unawares. Finding yourself in such a situation can be very stressful and, as I have mentioned, it may be too late!

Risk & reward

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