Organisations today are identifying risk as an integral part of innovation, says Ankita Shreeram
Traditionally, we Indians have been known to play it safe. But, this trend is changing as organisations in the spirit of newage entrepreneurship recognise that calculated risks can more often than not result in attractive payoffs. And so an ability to take a risk now and then is becoming a strength rather than a liability.“Risk-taking is becoming a core skill. Employers now need people who can communicate, work in teams, take decisions, be adaptable and take risks. Despite the demand for skills of innovation and enterprise, and despite recognition of the value of invention and original thinking, the role of risktaking has also taken a front seat,” agrees Jitendra Jain - MD & CEO, Neev Group. Sukhesh Madaan, CEO, Envent adds, “As a thumb rule, 50 per cent of risks taken go down the drain and fail, but still, there is a possibility of the remaining 50 per cent to succeed and these bold decisions could change the direction of the organisation.”
WHY TAKE RISKS? “There is a direct correlation between risks and rewards. Any organisation will profit, either through taking a risk or managing it. Every new company has succeeded because someone was willing to take the risk of challenging the status quo. But maintaining the status quo is a risk in itself. So, taking risks is unavoidable. The differentiator will be the process followed and the level of sophistication of risk management,” explains Naushad Panjwani, senior executive director, Knight Frank India.
ENCOURAGING RISK-TAKING BEHAVIOUR “HR could play a vital role in encouraging the staff to take calculated risks by providing them with a scheduled ‘time off ’ from their routine work to have brainstorming sessions on how to innovate by taking minimal risks into consideration. HR could also provide training on how to handle the initial ‘resistance to change’, since most staff is usually riskaverse and would prefer to stay in their comfort zone. Support from the HR department could also help to overcome the fear of failure on the minds of the employees, which prevent them from taking risks. Incentives (financial and other perks such as certificates of appreciation, prizes, vacations, etc) could be given to employees who are able to take calculated risks and come up with innovative ideas for the betterment of the organisation,” suggests Dr Sanjay Cherian, VP, Frontier Lifeline Hospital (Dr KM Cherian Heart Foundation), Chennai.
Vijayaraghavan Pisharody, deputy GM - HR and communication, Stempeutics, cautions, “People fear the very cost of failure from taking risks. As long as the rewards outweigh the perceived risk, people will be rational enough to take the challenge. Having said that, there are people who are typically riskaverse and it is better to appreciate their nature and move forward.”
Thus, it certainly makes sense to encourage employees who always challenge the rules and take a chance every now and then.
Monty Bharali, head - HR, DST Worldwide Services, India suggests three actions that HR can take to encourage risk-taking behaviour:
The people strategy should clearly include incentivised programmes where initiative-taking is rewarded every time it’s successful;
Performance management should actively encourage new mistakes being committed, especially when it’s towards the goal of innovation;
Every organisation has an opportunity to act like a venture capitalist to a new idea to convert the spark into an actually delivery initiative.
