Are you better at managing uncertainty or risk? They are not the same thing, and we all gravitate toward one side of the spectrum.
All leadership/management jobs are primarily about managing uncertainty or risk, and yet often we fail in careers and in business not because we are ineffective, but because they are mismatched to our strengths.
In this episode we discuss:
- the difference uncertainty and risk as defined by the famous business thinker Frank Knight;
- Case studies of Aldi vs Kaufland and Tesla vs General Motors/Porsche;
- when to make projections (risk) and when to make predictions (uncertainty);
- how uncertainties can be quantified with big data and transformed into manageable risks;
- the trend toward uncertainty;
- a matrix comparing risk and uncertainty contexts for business management; and
- choosing careers and business opportunities that suit your risk/uncertainty strengths.
Full research, and the comparison table, is at: https://www.discernable.io/post/risk-vs-uncertainty
