Read EACH Students Response
Provide THREE references to support your answer to the student
I dont care of you use the same references to respond to all three students but each answer MUST have three PEER REVIEWED references to support your response on if you agree or dont agree with the students answer to this weeks questions
THREE STUDENT RESPONSES REQUIRE THREE SEPARATE ANSWERS WITH PEER REVIEWED REFERENCES –
ORG 827 WEEK 7 STUDENT REPONSES
ORIGINAL QUESTION – Some assert it is imperative for leaders to be bold when making strategic decisions. How does a leader determine how much risk is acceptable when making a decision? Explain.
STUDENT 1- KAREN-
In the realm of leadership, assertiveness and boldness have emerged as crucial qualities when it comes to making strategic decisions (Lynch & Benson, 2023). The ability to confidently and decisively navigate complex situations sets exceptional leaders apart (Lynch & Benson, 2023). By embracing assertiveness and boldness, leaders can inspire their teams, drive innovation, and achieve remarkable success (Jung et al., 2020). Leaders are constantly faced with decisions involving risk (Jung et al., 2020). Determining how much risk is acceptable can be challenging, as it requires a delicate balance between seizing opportunities and protecting the organization's interests (Jung et al., 2020).
One crucial factor in assessing acceptable risk is understanding the organization's overall goals and objectives (Jung et al., 2020). A leader must have a clear vision of their goal and align their decision-making process accordingly (Jung et al., 2020). By evaluating whether the potential benefits outweigh the potential risks, leaders can make informed choices that propel their organization forward (Jung et al., 2020).
Another critical consideration is conducting a thorough analysis of the available information (Jung et al., 2020). Leaders must gather and evaluate all relevant data objectively to gauge the potential outcomes and associated risks (Jung et al., 2020). Measuring possible effects and associated risks includes examining market trends, competitor strategies, financial implications, and other factors that may impact the decision (Jung et al., 2020).
Jung, K. B., Kang, S.-W., & Choi, S. B. (2020). Empowering leadership, risk-taking behavior, and employees' commitment to organizational change: The mediated moderating role of task complexity. Sustainability, 12(6), 1–18. https://doi.org/10.3390/su12062340
STUDENT 2- KENYON
Risk is something that a leader who must answer to a board of directors needs to be based on the issue at hand. The amount of risk a leader takes will be connected to innovation and creativity. Risk-taking might be part of the culture, depending on the organization's size. If an organization is small to medium, the risk-taking environment is just part of the norms of the entity (Rahaman et al., 2021). Leadership, especially when migrating into new markets, calls for risk. Regarding larger organizations, risk-taking can be conducted differently than in small or medium-sized organizations. Smaller organizations can be more ambidextrous to maneuver, but larger firms have more systems and processes. With larger organizations, leaders must get internal stakeholders, such as employees, and external stakeholders, such as shareholders, to buy in due to the change that is taking place (Shad et al., 2019). Risk-taking is inevitable, but depending on the situation, any leader should take the time to investigate the amount of risk to be taken.
References
Ferreira de Araújo Lima, P., Crema, M., & Verbano, C. (2020). Risk management in SMEs: A systematic literature review and future directions. European Management Journal, 38(1), 78–94. https://doi.org/10.1016/j.emj.2019.06.005
STUDENT 3- TIMOTHY
Determining the acceptable level of risk when making strategic decisions involves a careful assessment of various factors. A leader should consider the potential impact and consequences of the decision, how much risk the organization is willing to assume, the available resources and capabilities, and the overall business environment. By conducting a thorough risk analysis, a leader can evaluate the likelihood of success and failure for each option. They must weigh the potential benefits of being bold and taking risks against the potential drawbacks and negative outcomes (Bennett, et al., 2020). A key aspect is understanding the organization's acceptance for risk, which varies based on its industry, financial stability, and long-term goals.
Effective leaders should also rely on data and insights to make informed decisions, using past experiences, market research, and expert opinions. Engaging stakeholders and seeking diverse perspectives can help in gaining a holistic view of the potential risks involved. Ultimately, striking the right balance between confidence and carefulness is vital. Leaders must be ready to take calculated risks that align with the organization's vision and goals, while also being prepared to adapt and adjust their approach based on new information or changing circumstances.
Bennett, M. R., Ogutu, J., & Olawoyin, R. (2020). Intelligent risk management: seven practical steps to a strong risk culture & financial maturity. Professional Safety, 65(5), 33–38. https://eds-p-ebscohost-com.lopes.idm.oclc.org/eds/pdfviewer/pdfviewer?vid=4&sid=e6100795-822e-487b-b741-5f811d287f1c%40redis
