Never avoid risk until you have thoroughly checked the alternatives, because in many cases you could be losing out on an opportunity. Instead, analyze the situation and quantify probabilities as well as impact through these 4 practical options: Exploit, Accept, Transfer, Mitigate.
Let’s look at these steps in practice with an example from everyday life. Say you stumble upon a Craigslist ad for a bicycle that costs $1. Here are my 4 options:
Exploit: Can I repair the bike and flip it for $100?
Accept: If the bike is unrepairable, simply take it to the junkyard.
Transfer: Negotiate with the seller that if the bike is unrepairable, I can return it.
Mitigate: Keep it. I still need something stylish to hang on the wall in my personal gym.
Remember: only – and only (!) if you cannot exploit the risk, if you are not willing to accept it and not in a position to transfer or mitigate the risk, only then avoid it.
And how does this apply to your business? Remember the $1 bicycle? Instead of letting prejudices about Europe discouraging you, seize the opportunity — there are multiple angles to win and only 1 to lose: avoiding risk!
When have you seized the opportunity instead of avoided the risk?