When it comes to aversion to risk, nobody holds a candle to lawyers. We’re trained to anticipate risks, protect against them, and quickly act to minimize damages when something goes wrong.
We do this for our clients and for ourself. It’s kinda our thing.
Risk management in any business or profession just makes sense. What doesn’t make sense are efforts to eliminate all risk, or helping clients do the same.
Why?
For one thing, it is an impossible task. As long as we’re in business (and alive), we can’t eliminate risk. It’s always there. It’s the nature of business. It’s a fact of life.
But even if we could completely eliminate risk, we shouldn’t. Because without risk, there can be no reward. Without risk, you “risk” becoming stale and boring and losing clients to competitors who aren’t.
If we eliminate all risk, we simultaneously eliminate new ideas and opportunities, which are, by definition, risky. If we’re unwilling to experiment with a new practice area, niche market, or marketing method, we’ll never enjoy the fruits of those efforts.
Without taking risks, our services look like every other risk-adverse lawyers’. Our advertising messages are stale, our articles say the same things said by every other lawyer, and nobody notices us. To protect yourself from mistakes and losses and criticism, you lose your competitive edge.
A business grows in proportion to the risks it takes and successfully manages.
Successful lawyers take chances, innovate, and refuse to (completely) play it safe.
Instead of trying to eliminate all risks, we should reduce our exposure to unreasonable risks, prefer risks with a sizable potential payoff, and be ever-vigilant. And advise our clients to do the same.
Intelligently manage risk. Don’t eliminate it.