10 Ways to Manage Risk in Anything You Do

By Sandi Smith

1. Research your project thoroughly. Let's say you want to spend the next year creating a new product that you think will generate your retirement money. Have you looked at who your competition is? Is there something just like it already in the marketplace? Do your homework up front to avoid upsets down the road.
   
   
2. If you decide to do something risky, create some risk-reducing processes to lower the risk. For example, pilots have checklists so they don't forget to set the flaps, lower the landing gear, or worse, put enough fuel in the plane.
   
   
3. Backup your project. If you're writing the next best-selling novel, have a backup in case your computer crashes. Make copies of important papers and store them offsite. If something bad happens (fire, flood, etc.), be prepared, and at least you won't have lost your intellectual property if you back it up and store it offsite.
   
   
4. Build in redundancy on your project. I have at least two artists and two copywriters that I can fall back on if I need to expand my team.
   
   
5. Get plenty of rest. Don't constantly run on adrenaline. Take time for relaxation breaks. Don't let other people's deadlines be your problem if they didn't plan ahead.
   
   
6. Plan ahead! Be prepared for whatever big project you'll be taking on. If you have skills weaknesses, shore them up by taking a class or reading books.
   
   
7. Understand the stakes of any project you take on. Read any contracts carefully. If you commit, don't whine halfway through the project, even if it is tougher than you thought it would be. Commit to both the project and any consequences that could arise during the project.
   
   
8. Measure your progress in small steps or milestones. A pilot reports waypoints along his flight plan to an air traffic controller. Report and celebrate your milestones along a big project.
   
   
9. Don't delay when an extraordinary opportunity comes up. Highly successful people, when confronted with an extraordinary opportunity, take it seriously. They understand it will likely never arise again in their lifetimes. They know they will only have one chance to say yes, and they make themselves ready for such times. Be ready when these things come up for you.
   
   
10. Have a plan that you can execute from. All pilots have a flight plan. When we fill these forms out, it asks about the emergency equipment we have on board as well as the route to be flown. A good plan makes you think about contingencies and whether you are prepared for everything that could happen.

If you'd like to read about how I managed risk in a life-threatening situation and what it takes to do something that only 20 other women in the world have done, check out my new book, Following Amelia.

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