Are You Risk Averse at Work? Learn Why Challenging Yourself Will Help You Get Ahead
By Michelle Hendelman, Editor-in-Chief
What does it mean to be a risk taker at work? For many people, the idea of asking for a raise, going for a big promotion, or taking on a challenging project is daunting, but these are exactly the types of actions that risk-taking employees, especially women, should be doing in order to drive their career advancement in the right direction. Previous studies on risk appetite have indicated that women generally do not take as many risks as men, but is this hypothesis true, and does it apply to business women in a corporate setting?
In a recent working paper, researchers at Tufts University suggest that the idea that women are more risk averse than men needs to be revisited. The paper’s author, Julie A. Nelson, states, “Taken as a bald statement, the statement might be taken as indicating something that is universally true for every individual member of the classes ‘women’ and ‘men.’ In this case, it would have to be true that every individual woman is more risk averse than every individual man. This exceedingly strong implication is not likely intended by those who write such statements, since just one example of a cautious man and a bold woman disproves it.”
According to the research, not all women are more risk averse than men. It suggests why we shouldn’t base our assumptions of women in business on stereotypes – which exactly why we must move beyond tokenism in diversity hiring.
Getting Beyond Gender Generalizations of Risk Taking
The problem with traditional risk assessment studies is that they tend to generalize a person’s propensity for risk based on behavior observed in narrowly focused experiments. This is why psychology researchers at Columbia University created a domain specific tool for gathering information about an individual’s propensity for risk, known as the DOSPERT scale. This scale looks at six different domains where risk taking is possible: ethical, recreational, health, social, investing, and gambling. In one research study, attitudes and perceptions toward risk taking were put to the test as researchers set out to prove that the decision to take risks is situational. For instance, someone who takes risk in a gambling setting might not be prone to taking risks in an ethical setting.
This supports the fact that just because women have been broadly categorized as more risk averse than men does not mean this theory holds true in the business world.
According to Doug Sundheim, author of Taking Smart Risks, women in business do take as many risks as men, but because of the general perception of what it means to be a risk taker, these choices might not be acknowledged as risks. In an article for Harvard Business Review, he says, “They don’t point to risks like standing up for what’s right in the face of opposition, or taking the ethical path when there’s pressure to stray — important risks that I’ve found women are particularly strong at taking. If these sorts of risks were fully accounted for in our business culture, would it balance the gender perception?”
What Can You Do to Help Shatter Perceptions That Women are More Risk Averse?
Although research studies present the argument that women are capable of taking just as many risks as men, the real evidence to support this hypothesis will be found in the day-to-day actions taken by senior level women in business who have the power to speak their mind, provide their opinion, and assert themselves as leaders.
Risk taking at work does not mean that you should make decisions that could potentially have a negative impact on your career. Instead, it means taking calculated advantage of opportunities to increase your visibility, and in return, bolster your self-confidence.
One example of how to take more risks at work is asking the important questions before someone else has the chance to. Speaking up in meetings can be intimidating, but by doing so you will get the attention and the credit you deserve. Another scenario where risk taking might come into play at work is asking for a raise. If you know that your results at work warrant an increase in compensation, then you should prepare a solid case for yourself and get the guts to ask your manager for a raise. You might just surprise yourself.
Finally, you should be volunteering for the difficult projects that your colleagues do not want to manage. Taking the initiative on challenging tasks is risky, but if you turn in a good result, the reward will definitely be worth the risk.
