These are some of the factors involved in considering risk
- Self-confidence and the personal belief in the ability to make a new venture or innova-tion work is an important factor. Personal dynamism, and intense and sustained effort to achieve change are required, but are not sufficient on their own.
-The ability to manage emotional tension and arousal connected with risk is significant, in that people who are prone to become anxious and fearful are better off not taking such risks.
- Negotiated risk sharing, by engaging investors, partners and others in the venture to share risk is a sensible strategy, and is necessary in any venture where the entrepreneur does not wish or is not able to fully self-finance a venture which is an attractive investment.
-Iterative, step-by-step working, can break apparently big risks down into smaller, limited ones where the exposure at each stage to failure is reduced. An example is checking that each stage of an innovation works before going on to the next, and that each decision has been evaluated to determine its impact before the next is made. However, time pressure can reduce the scope for this form of risk management.