How to Evaluate Risks and Opportunities as a Leader

A business case presents possibilities – not a roll of the dice.  As a leader, you need to look at what might happen if you and your organization follow a certain path. Important decisions are based on these predictions and the closer you can come to what actually will occur, the more valuable your case is.

To create a strong business case, you need to evaluate not only the risks but also the opportunities. Making the wrong assumptions, either due to over-optimism or too negative a bias can lead to disastrous consequences.

Based upon leadership training program best practices, consider possible risks: problems with product development, with raw material delivery schedules, with insufficient funds for unexpected costs, with unanticipated competition. The list goes on and on. But each risk must be weighed in terms of its likely occurrence and what steps you can take to avoid or solve the problem.

But don’t forget the opportunities. They are often the flip side of the risks, i.e., a speed-up of development and deliveries, a financial windfall, the lack of competition. These, too, should be evaluated.

The strength of your business case rests upon the validity of the assumptions you make.