How to Make Smart Decisions When Risks are High

Stepping out to cross the road, could mean you get run over by a bus, if you made a bad decision based on how you have judged distance or speed of the vehicle.

Be aware there is a degree of risk in every decision we make- you cannot control every factor involved.

So, what do you do when you have to make decisions in situations where you know that the risks are high?

The next time you have to make a decision where the outcome is vague, apply the following methods:

Make Uncertainty work in your Favour. In cases where you lack sufficient information, make a list of what you don’t know rather than what you do.

You can make uncertainty work for you by weighing up the unknowns and deciding how seriously they will affect the outcome — you may be surprised to find that the impact is less serious than you thought and that the risk is worth taking.

Think Process rather than Outcome. What really makes for a smart decision is the process. This process should include assessing our own knowledge, consulting others, if necessary, on working with both the knowns and the unknowns. Even if the outcome is undesired, it doesn’t mean the decision was wrong.

Put in Perspective. Ask yourself what the impact of the decision will be in 5 weeks, 5 months and in 5 years.

This is the best way to put it into perspective and give you an indication of how much room you have for risk.

. . .

We can argue that in today’s fast-paced unpredictable world, making decisions has become harder — and riskier.

Making thoughtful, effective decisions when the outcomes are vague is challenging but making these types of decisions is an inevitable part of life.

Use the strategies discussed here and when you practice them often enough, you will learn to see decision-making as an opportunity to test your skills, knowledge and self- confidence.

More importantly, they are an opportunity to gain experience and learn invaluable lessons.

This post was created with Typeshare