One of the business world?s most innovative thinkers explains
how to take a unique, counterintuitive approach to the key issue
for every business ? growth ? by turning big threats
into big opportunities. The world is moving so quickly that
every business in every industry faces big threats. Risk is
one of those unpleasant realities--along with death and taxes--that
most people would prefer to ignore. In fact, many people
do ignore it as much as possible. On the rare
occasions when they think about risk, most people, including
business people, adopt a fatalistic attitude. "Oh, well," they
shrug, "No pain, no gain." They accept the conventional
wisdom that risk and reward go together?that to get great
upside results (higher-than-average profits, quantum leaps in
growth), you need to take big downside risks. It's a painful
but inescapable fact of life.
But there are ways to anticipate threatening changes and turn
them into successes. Risk and reward are not
inextricably linked. The reality is that it?s possible
to reduce the risks you face at the same time as you improve the
returns you enjoy. In fact, it?s not only possible but
essential. The leaders of today?s most successful
companies aren?t risk takers . . .
they?re risk shapers. They think day and night
about the risks they face and are continually working to develop
and implement strategies to reduce them. Their attitude
toward risk is the opposite of fatalistic--it's aggressive,
ruthless, and uncompromising.


Managed correctly, the risks you face can be transformed into
extraordinary growth opportunities.


Risk is considered a fact of life like the weather, a threat you
shouldn?t even think about combating. After all,
doesn?t everyone know you can have high returns or low
risk?but not both?


Over the next half-decade, the majority of business leaders will
come to understand that risks can be not merely controlled but
transformed into opportunities. Yet for now, this is a
minority opinion. Those who grasp this insight early and put
it to work in their industries--as a few far-sighted managers have
already done--will enjoy a huge advantage over their
competition.