“You miss 100% of the shots that you don’t take.”
This quote holds true for supply chain management as well. Ensuring that no risk is involved means bringing your procurement process to a standstill. No supply chain activities can take place if you are bent on making sure that risks are entirely eliminated. Risk taking is an integral part of any business process even more for supply chain management.
But that does not mean that any and all risks are taken without evaluating them for their gains or losses. All opportunities and risks presented must be carefully assessed to decide whether to venture in or not. Opportunities presented must not just be analyzed for their short-term benefits but also for the future paybacks in store. This process is known as intelligent risk-taking.
There are several factors that act as deterrents to intelligent risk-taking. Overcoming these obstacles can lead the path to taking worthwhile risks that reap immense benefits with time.
Fear is one such evident deterrent that keeps you from pursuing even highly rewarding opportunities. The higher the payback, the higher the risk involved holds true in many cases. Fear of risk-taking can be overcome by using the right tools to evaluate the risk involved and the payback expected. Analyzing and reviewing the good and bad of past risks can help in taking only intelligent risks in the future.
Some wait for the perfect opportunity to be presented to grasp hold of it and make the most of it. But rarely do such perfect opportunities come knocking on your door. This search for the ideal opportunity can lead to missing many other profitable opportunities involving reasonable risks. Being realistic about your expectations is more than important when it comes to making good business decisions.
Acting swiftly is just as important when taking good risk decisions. Delays in decision making and procrastination can only lead to the opportunity slipping away. But to be able to make good decisions quickly, other necessary tools must be at hand. Harrington Group International’s Supplier Management Software can help you with intelligent risk-taking. Contact HGINT now to take reasonable and smart risk decisions hereon.