Risk vs. Reward

We tend to think of business goals in terms of sales dollars, customer count, cost of goods sold, and profits. The media emphasizes results. Organizations chase results. Reward is based on results. There may be another way.

Look to reduce risk and the resulting rewards will come.

Risk reduction as the ultimate goal? How would that work?

Take for instance my recent rafting trip to West Virginia. You would think the outfitter I chose would tout the recreational aspects of the river trip, “Have fun at ACE!” would be the slogan. Not true. The entire experience was directed to safety. My host did not just ask for a signature on the bottom of a liability waiver, they read and explained each line item in depth. And offered a refund if any of the requirements were in conflict with reality.

Safety equipment such as personal flotation devices, helmets, wetsuits were not just assigned, they were personally fitted by experienced staff.

The bus ride to the river was filled with safety advice and a second refund offer was suggested to anyone who had succumbed to ‘peer pressure.’

It didn’t end there. Before each rapids our guide would explain the dangers and instruct us which direction to swim if we were to enter the water.

It was an exhilarating experience but fun was the result of the process of reducing risk.

Here at Delivra we operate with similar caution. A majority of prospective clients fail to meet our acceptable use guidelines and are turned down for service. That’s right – most organizations that contact us will not be accepted as customers.

Similarly, we take extra steps to onboard new clients with the objective making sure nothing goes wrong with their Delivra experience as they are learning the system.

Our IT and development departments are directed toward the same goals. The user interface must be available 24/7 and software functionality must be reliable.

Delivra is successful. We manage risk first. Rewards come as a bonus.

The saying goes, ‘no risk no reward.’ I suggest otherwise.

Neil Berman | President & CEO