converge · Problem Solving · 60–90 min · 3-15 people · medium energy

Smart Risk-Taking Playbook

This method helps organizations define and encourage smart risk-taking by establishing clear boundaries and turning failures into learning opportunities. It provides a practical playbook for teams to navigate risk effectively and foster a culture of innovation.

When to use Smart Risk-Taking Playbook

Use this method when an organization wants to encourage more innovation but is struggling with risk aversion or inconsistent risk-taking behavior.

What it solves

Teams stuck between playing it safe and making costly mistakes due to a lack of clear boundaries and a fear of failure.

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

  1. Define the organization's risk appetite and tolerance (15 min)
  2. Identify potential risks associated with innovation initiatives (20 min)
  3. Establish clear boundaries for risk-taking, including what is acceptable and unacceptable (25 min)
  4. Develop a process for learning from failures and turning them into progress (30 min)

Materials needed

  • Whiteboard or flip chart
  • Markers
  • Sticky notes
  • Examples of successful and unsuccessful risk-taking initiatives

Facilitator tips

  • Encourage open and honest discussion about risk and failure.
  • Focus on creating a safe environment where teams feel comfortable experimenting and learning.

Common pitfalls

  • Setting overly restrictive boundaries that stifle innovation.
  • Failing to learn from failures, leading to repeated mistakes.

Variations

  • Use a risk assessment matrix to prioritize potential risks.
  • Conduct a post-mortem analysis after each innovation initiative to identify lessons learned.

Running it online or hybrid

Use a shared document or whiteboard to collaboratively define risk boundaries and document potential failures.

What it produces

A documented playbook outlining the organization's approach to smart risk-taking, including clear boundaries, guidelines for experimentation, and a process for learning from failures.

Origin

Based on NOBL Academy's insights on innovation — source

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