To Grow Big, Take Risk. To Stay Big, Manage Risk

To grow, it's important to take risks, but not necessarily all of them. Whatever the risk, you have to be able to define and take action to manage it. In fact, defining the risk correctly and on your own terms is the most important step before taking action.

It's important to distinguish between risk and uncertainty. Uncertainty is dangerous because you don't know what you're doing. Do things that are certain and, at the same time, manage risk along the way.

To grow bigger, you'll need to take some form of risk. To stay big, learn to manage risks.

Managing risks requires education and understanding. It requires you to be active in your learning and improvement to spot the downside before it happens. If you're running a million-dollar business, the education required to manage risk will differ from that of a 100-million-dollar business. For a million-dollar business, your risk may revolve around sales and marketing, but for a 100-million-dollar business, your risks may involve leadership, industry changes, customer preferences, and more.

Depending on where you are in your career and business, taking risks is necessary to grow, and managing risks along the way is necessary.