Risk aversion is one of the most debilitating behaviours when it comes to carving out a more fulfilling working life. So much so that I decided it was about time I wrote about it! In this article I will share with you what is at the root of risk aversion, how it might be holding you back and some ways to overcome it. Plus, I will give you a little insight into how I have dealt with risks over the course of my own career.
How risk aversion can hold you back from finding true fulfilment in your working life
Risk aversion could be holding you back from finding greater fulfilment in your working life by stopping you from:
- leaving your current job
- setting up a new business
- putting yourself out there on social media
- applying for a promotion
- speaking up in a meeting
- signing up for some voluntary work
- beginning a new activity or joining a class
In what ways might you currently be avoiding taking a risk within your working life?
What impact is that having on you and your career?
What creates risk aversion?
There are several reasons why taking a risk might prove challenging:
- It brings into question your core needs as a human being – the need for safety, protection and security (for you and possibly for your family) and your basic physiological needs such as food, clothing and shelter. These are at the base of Maslow’s hierarchy of needs.
- It could be that you have been conditioned to play it safe by your family and what you witnessed in your upbringing. If your parents had very steady jobs and stayed in the same company and the same town all their lives, or you were explicitly told not to take a risk and stick with what you’ve got, this can run deep.
- Taking a risk inevitably will involve a change of some sort. Perhaps this is less about fearing taking the risk and more about fearing the change. Maybe you prefer to maintain the status quo (however unpalatable that is for you right now).
- Or maybe you are solely focused on the potential negative outcomes of taking a risk and what could go wrong instead of the potential positive outcomes and the range of possibilities on offer for you.
- It could be that you have taken a risk previously or witnessed someone else take a risk which did not work out and had negative consequences. Maybe you have a friend who risked their life savings to set up their own business and ended up going bankrupt. You could be associating taking a risk with a similar result this time.
What is the reason you are holding yourself back from taking a risk you want/need to take?
Risk aversion and career change
Bringing risk aversion into context now with making a career change, I will share with you what I know to be true from my coaching practice. Here are some of the reasons why people avoid taking a risk when it comes to making a career change.
And it chiefly boils down to a belief about having to trade off success in one area of their life (ie. career) for another, for example:
- Finances – Losing their current level of income and not being able to enjoy the same lifestyle
- Mental and physical wellbeing – Becoming more stressed and out of balance
- Family – Not having enough time to spend with their family because of having to work 24/7
- Fun and leisure – Having less time and energy to be able to enjoy life outside of work
What belief do you hold about needing to trade off one area of your life in order to achieve more success in your career?
Risk aversion: My experience
Arriving where I currently am on my own career path (feeling deeply fulfilled, purposeful and free) has not been straight forward. It has, at key moments, involved taking a significant risk – or what I like to refer to as ‘a leap of faith’. Over the past 20 plus years, I have left the relative safety of three decent, regular wage paying jobs – and on two occasions with no other job to go into. However, there were two distinct factors involved which supported me in taking these risks.
Firstly, I did my due diligence by creating myself a financial buffer and understanding what essential costs I needed to cover whilst I aligned with a new career path. And by examining those things which I no longer needed to spend money on (as they were now less of a priority).
The second thing was my faith. I trusted in the Universe to support me each time I took a leap. Whilst there was always a degree of fear present, I learnt to replace any limiting beliefs with a belief that I would be fine, whatever the outcome.
With all the risks I have taken, I can honestly say that I have never looked back on any of them. And, having taken them, I now have stronger belief in myself and my ability to take risks. This is not to say that every risk I ever take works out (that’s another blog for another time). But that, with practice, I believe we can all become less risk averse and start to reap the rewards in our lives and our careers.
7 strategies to help you overcome risk aversion and start transforming your working life
If you are feeling held back in your working life by risk aversion, don’t worry – there is a way through it! Here are my top 7 suggestions to help you navigate taking a risk and start creating a more fulfilling and harmonious working life:
1. Draw from past experience – Think of a time when you have previously taken a risk of some sort (big or small). What was the outcome? What were the conditions which led you to taking that risk? What can you learn from that experience?
2. Start small – Get comfortable in taking risks by taking small ones to start with. Build yourself up to taking a big one (such as a career change) so it feels less overwhelming. What small risk might you be able to take in this next week? Reflect on what happens after.
3. Trust in your ability to course-correct – How much do you trust in yourself to put things right, should your worst-case scenario transpire? Draw on your skills and strengths such as resilience and problem-solving – to help you get back on track if things don’t work out as you had intended.
4. Consider the risk of not taking a risk – What might happen if you stay stuck where you are, such as: continuing to feel deeply unfulfilled, out of balance, stressed or desperately unhappy. Consider the knock-on effects of your unhappiness or stress on your family, friends or colleagues. Or of never reaching your full potential (the risk of ‘dying with your music still in you’).
5. Get clear on what the outcome and benefits are of taking a risk – Instead of focusing on what could go wrong, open up to the possibility of what could go right. Clarify exactly what lies on the other side of taking this risk – perhaps a new job which feels more purposeful, a new business which gives you greater freedom and creative scope, sharing your creative ideas with the world which feels joyful. What exactly does that look like?
6. Call on your Higher Self – Risk aversion is often linked with fear and fear stems from the Ego Self. So, to counter the impact of the Ego Self, call on your Higher Self. This means that instead of worrying and overthinking, you practice trust and surrender. You know that you cannot ‘fail’, you can only learn and grow from your life experiences.
7. Due your due diligence (and accept the rest is out of your control) – This means managing the level of risk or putting things in place to give you some degree of protection. For example, thoroughly researching your new business idea, creating a survival budget and setting aside a fund to cover you whilst you establish yourself in your new career. Control the things you can control, and then practice acceptance that the rest is out of your control.
What risk are you considering taking this year?