One of the essential factors in leading nonprofit organizations is the ability for the leader to take calculated risks. Leadership seems to go hand in hand with the reality of risk. Leaders who refuse to take risks will never be able to move their organizations forward. Risk does have a fair share of drawbacks and can cause a number of reasons to be avoided.
There are several logical reasons that leaders make the choice to avoid risk. Here are just a few of the reasons nonprofit leaders make the choice to avoid risks.
When the leader is insecure with themselves, or with the organization, they will not take necessary risks. There will be times when leaders will have to take risks to help move the organization forward. Leaders must be willing to take risks but be reasonable with the risks that they take. Failure to take risks always leads to stagnation and lack of growth.
Risks may or may not need to be made during times of stability. One of the most difficult times for leaders to take risks is when the organization is not on stable ground. Leaders often need to carefully consider risk taking during these unstable times. Leaders may need to take risks during times of instability to regain stability within the organization.
3. Fear of failure
Failure is often a huge issue for leaders. The fear of failure can become crippling. Fear can stall the organization and create a long term paralysis. Leaders must move beyond their fears to take calculated risks. Sometimes risk taking can be foolish, take time to think through decisions and make appropriate plans to take proper risks.
4. Unwillingness to face problems
Leaders are often unwilling to deal with issues that seem controversial. The unwillingness to face the problems within the organization only allows the issues to grow and tend to multiply additional problems. Leaders must be willing to face problems with the desire to solve them. Sometimes facing problems involves risks.
5. Self Satisfaction
One issue that tends to follow success is one of self satisfaction. The leader achieves some minor victories and then stops pushing for larger ones. The leader becomes complacent and either slows the pursuit of new success or stops altogether.
Leaders often become self satisfied after success is achieved. The concept is simply resting on laurels that have already been won. Leaders have a tendency to want to stop once goals are successfully met. The reality is that new goals need to be made and new levels of success must be pursued. Leaders can become fixated on taking pride in the success and become satisfied with the new level of the organization.
Leaders can fall into a variety of traps that will stop them from taking risks. Leaders stop taking risks when they become too insecure to move forward into the future. Leaders allow their organizations and their personal lives to fall apart due to some form of instability. Leaders become paralyzed by the fear of failing at some effort. Leaders can become unwilling to deal with the problems in their organization. Some leaders become self satisfied with their current level of success that they stop chasing their dreams and never reach new levels of success.