Stop Avoiding Risk and Embrace It!

I was recently at task, testing some keywords (something Marketers do from time to time) and was surprised to see a competitor’s webpage description state the following in a Google search result:

“Avoid risk by using Monte Carlo simulation to show possible outcomes in your Microsoft Excel Spreadsheet”.

Now imagine, for a moment, a business whose standard practice was to avoid risk. One would be hard pressed to think of a worse/more outdated/wholly unrealistic business strategy than this. Every decision we make (even after running a spreadsheet through 100,000 iterations) presents at least some level of risk and consistently running in the other direction when faced with it can only lead to squandered opportunities, depleted value and what a recent HBR article referred to generally as “organizational drag”.

On the flip side, heedlessly taking on the riskiest of ventures would be none the wiser. The level of risk that should be tolerated or sought varies greatly from one decision scenario to the next and often depends upon a tangle of uncertain factors. DPL offers a powerful risk modeling environment that can be leveraged to help you understand, quantify, and manage risk. Armed with this foresight one can then confidently embrace a healthy, calculated dose of risk, leading to better outcomes and enhanced value creation.