This video is from the Understanding Calculated Risk online training course. Click here to view full course: [ Ссылка ] In business, we make careful decisions after evaluating potential outcomes and uncertainties. We calculate risk by analyzing the potential rewards and costs of a decision. It enables businesses to balance ambition with caution. Taking calculated risks can help professionals and organizations seize opportunities, innovate and navigate uncertain situations. There are important factors that affect how businesses calculate risks such as market competition, available resources, regulations, economy, and leadership style. If you agree to take a chance, you'll need risk management to identify, understand and reduce possible costs that could affect your company's goals and operations. Risk management offers protection from uncertainty and the opportunity to protect your assets. For instance, consider the impact of market changes, natural disasters or legal problems on a company's finances. There's value in decreasing financial losses through safety measures, insurance plans, and investments. When businesses plan to combat risks, they're more likely to make smarter choices like following backup plans or emergency procedures. Managing legal risks helps companies avoid fines and costly disruptions. It also helps create a culture of honesty, responsibility and good behavior in the company. Customers, employees and investors often appreciate companies that prioritize risk management because it shows that they care about long term success. An example of a good risk would be a company developing and introducing a new product. The organization can never be entirely sure if the market will accept the product, how the competition will respond, and if there will be financial losses. But it can minimize these risks by conducting a thorough market analysis, and applying customer feedback to the company's marketing strategies. The leaders also take time to make sure the business can afford the most probable negative outcomes before moving forward with the decision. This company's actions increase its chances for a successful product launch, while ensuring a safety net or resilient backup plan. An example of a bad risk would be a business that falsifies financial records or deceives investors. This action might help the organization get short term gains, but it invites significant legal, financial and reputational damage, along with legal penalties, bankruptcy and business closure. The risk is too high in this case, since this choice would also be counterproductive against the company's priorities. In business. Some choices are not always as clear as these examples. You might have choices that are ethically and legally neutral. For these cases, it's important to understand that whether a risk is good or bad depends on the specific context. Making a new marketing strategy may be a good risk for one business, but a bad risk for another. The only way to know is to assess the circumstances and the organization's values. If situation has different potential outcomes with its advantages and disadvantages.

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