Risk is not an art or science, but rather a "crapshoot". The rewards can be enhanced dramatically by adding a degree of risk to the equation. The question is how much risk can or should a company take. Here are a few types of risk:

• CALCULATED RISK is based on some facts that provide a small degree of safety for the risked investment. The returns are not as large as a real "gamble" but such an investment provides a degree of safety.

• MARKETING RISK involves launching a new product line and having second thoughts about whether there was enough market research and enough audience survey feedback.

• ACQUISITION RISK in which you second guess yourself about the successful bridging of corporate cultures and whether reducing the labor force due to redundancy will really provide the anticipated savings.

Sometimes in order to pull ahead of your competitors you may need to take a risky action or make a risky move. Each situation is different and should be evaluated on its own merits. If you must make a risky decision, evaluate the pros and cons to see all possibilities before committing to a decision. Remember. there is some degree of risk associated with everything we do.

Every business executive needs a working knowledge of risk management and sound decision-making. A risky decision that worked and resulted in great rewards, does not mean that it will work in the same way next time. The more input that is available in the decision-making process, the safer that outcome will be.