Evaluate the Risks

After you have looked at each option in terms of"what if," determining who (or what) will gain or lose from possible outcomes, you should look at your decision in terms of risk. How much risk are you willing to take, and are you willing to suffer the consequences if you make the wrong choice? For example, you are considering buying shares of a stock. The choice is to buy, or not to buy. The best-case scenario is that you buy and the price skyrockets. The worst-case scenario is you buy and the price plummets. Notice that the risk only occurs if you make the purchase. Therefore in this case, you need to decide if you can tolerate the risk of having the worst-case scenario occur. If you can't, you should not buy. The best question to ask yourself is, if you take the risk, how much money can you afford to lose?

Here is another scenario: you are a manager who must hire two new employees. When you advertise the openings you get dozens of resumes. Two of them belong to current employees who wish to move up to higher paying jobs with more responsibility. You know them and are impressed with their job performance. The top two resumes from the rest of the batch are graduates from prestigious business schools. However, they have no relevant work experience. Who do you hire?

Evaluate the decision in terms of risk. The current employees are known to you. If you hire them, there is little risk that they will not be able to perform well on the job. Based on your own observations, they are both conscientious individuals who are more than capable of doing well in the new positions. The other candidates are a riskier choice. Although they have the education, they lack experience. Will you have to spend countless hours training them? Will they be able to successfully handle the job requirements? You can only guess at the answers. If you want to make a judgment call based on what will be the least risk, you will hire the current employees.

Friendly Persuasion

Friendly Persuasion

To do this successfully you need to build a clear path of action by using tools if necessary. These tools would be facts, evidence and stories which you know they can relate to. Plus you always want to have their best interests at heart, in other words, you know what is good for them

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