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Business is a math problem, an ever-changing equation of risk versus reward.
When the reward is greater than the risk, we act.
Reward > Risk
We make this calculation on everything, from directing funds into new marketing channels to determining that you and your team should spend time and energy on a new product.
Every decision is based on the current information available to us. And it’s safe to say we wouldn’t decide to take any action if we thought we couldn’t execute successfully.
We take action once we’ve decided the rewards outweigh the risk. Then we act and execute.
What if there was no risk? This would completely change the equation because the reward would always be greater than the risk.