explore · Problem Solving · 45–60 min · 4-12 people · low energy

Smart Risk-Taking Definition

This method helps organizations define 'smart risk-taking' to encourage calculated risks and innovation while setting clear boundaries. It moves teams beyond simply 'playing it safe' or making costly mistakes.

When to use Smart Risk-Taking Definition

Use this method when an organization wants to foster a culture of innovation and calculated risk-taking, but lacks a clear understanding of what constitutes 'smart risk'.

What it solves

Risk-averse culture, fear of failure, lack of innovation, costly mistakes due to poorly calculated risks.

How to run Smart Risk-Taking Definition, step by step

  1. Introduce the concept of smart risk-taking and explain why it's important for innovation. (5 min)
  2. Ask participants to individually brainstorm examples of 'smart risks' and 'unacceptable risks' within the organization. (15 min)
  3. Facilitate a discussion where participants share their examples and identify common themes and principles. (20 min)
  4. Work together to create a shared definition of 'smart risk-taking' that incorporates the key principles and boundaries. (10 min)
  5. Document the shared definition and communicate it to all teams within the organization. (5 min)

Materials needed

  • Whiteboard or shared document
  • Markers or digital pens
  • Sticky notes

Facilitator tips

  • Encourage participants to be specific and provide concrete examples.
  • Focus on creating a definition that is both clear and empowering.

Common pitfalls

  • Participants may be hesitant to share examples of past failures.
  • Ensure that the definition is aligned with the organization's overall strategy and risk tolerance.

Variations

  • Invite an external expert on risk management to share their insights.
  • Use case studies to illustrate different types of risks and their potential outcomes.

Running it online or hybrid

Use a shared document or virtual whiteboard to collaboratively define 'smart risk-taking' and establish clear boundaries.

What it produces

A shared definition of 'smart risk-taking' with clear boundaries, examples of acceptable and unacceptable risks, and a process for evaluating potential risks.

Origin

Based on NOBL's framework for smart risk-taking — source

Build a session around Smart Risk-Taking Definition

METODIC places Smart Risk-Taking Definition inside a complete, timed session plan — agenda, worksheets, facilitator guide and slides — matched to your group and goal.

Generate a session with Smart Risk-Taking Definition · Try METODIC free