Risk-taking vs Risk management

For some employers, the decision to recruit a risk-taker is one made with trepidation.

However, we love people who are not afraid to take a chance: it is these hires that really help our business grow and move in exciting directions – it is just a case of finding the right balance between risk-taking and risk management.

What is risk?

We experience risk daily.  In many cases, risk presents an opportunity; we have all read inspirational quotes from business leaders confirming such.  Some people are more predisposed to taking risks than others and some are more predisposed to taking unnecessary or uncalculated risks!  This is why risk management is the key to good risk-taking is managing the risk to begin with.

What is the difference between risk-taking and risk management?

There are two important aspects to risk – risk-taking and risk management. Risk management is a proactive approach. It aims to analyse potential threats in advance and introduce actions to mitigate those threats. This is done to remove elements of uncertainty and ultimately minimise risk.

Risk-taking, on the other hand, is a little more reactive and is a response to threats that may not have been planned. This tends to result in impulsive actions, but it can lead to big rewards. Smart risk-takers combine these approaches and are popular hires for a whole range of businesses.

Why is risk relevant to software development?

A quick Google search shows that IT project failure is a big topic in the industry – this is without even considering those that do not meet initial goals or are not delivered on time.  This is where risk management and risk-taking come to the fore – the former to minimise threats, the latter to seize opportunities.

The best software developers will consider all the potential pitfalls that could occur with a project. This will consider the people, technologies and expectations involved. With the right planning, the best software developers will have solutions prepared even for the least likely circumstances.

Why we like smart risk-takers

At Aquarium, we understand the phrase ‘no reward without risk’. Growth depends on people that are not afraid to take chances – and we like to think this is exactly what makes us successful. But, while risk-taking is crucial to project and business progression, it would be reckless not to increase the chances of reward with smart risk management. So, while risk-takers might make a few managers nervous, we think they really help a business move forward – providing they do so wisely.