Risking is very profitable to both an individual and to the organization. There is a common say that goes if you fear risking, you risk much, this, therefore shows how good risking is. However, risking has got many pitfalls they include; fear of the unknown (Hoffman, 2002). Naturally a risk is not anything that one just gets into. Risking means that one is willing to pay the cost of risking and because the results are in many cases not known, risk seeking is expensive. All this is because; people who decide to risk must be having a better reserve to take care of the losses in case of a risk not succeeding.
Decision making is a very important aspect in the organization; this is an action that needs much attention, knowing what your manager desires may be of great benefits while making decisions in the organization (Abu-Mostafa, 1999). Many people have had problems with their managers for not knowing what the manager desires after making very serious decisions in the organization. Knowing, the manager’s desirability curve enables faster decisions that do not bring problems in the end.
In a bid to procure information technology gadgets, the same gadgets that were needed were unknown neither had they been seen. The only thing we knew about the gadgets is how best they could work. The organization decided to procure the gadgets, as the supplier decided to supply the gadgets, install them and see them working (Davis & Pharro, 2003). It was a great risk since there is no other place that these gadgets had worked before. The agreement here was that we were to send the purchasing costs so that the installation costs could follow later.
The whole process could not go without conditions that is, if they were never achieved, and then the whole deal would not materialize. The first condition that the buying of the gadgets was necessary before transporting them; this would help show the commitment to the gadgets (Davis & Pharro, 2003). The other condition was that payment was needed when gadgets become profitable to the organization. It was very hard to know if at all the gadgets could benefit the organization but because of the surety of the gadgets and their performance, they would most probably work (Abu-Mostafa, 1999).
The arrangement was very successful at the end of it all because, both parties were ready to share in the risky venture (Hacker & O'Leary, 2012). The sending of money was a sign of readiness, and since the supplier decided to bring the gadgets, without the knowledge of their performance in a different place, he was ready to risk hence risk shared. It is important to note that the whole process is only successful because of the trust vested in the two in the agreement.
Abu-Mostafa, Y. S. (1999). Computational finance 1999. Cambridge, Mass: MIT Press.
Davis, T., & Pharro, R. (2003). The relationship manager: The next generation of project management. Aldershot [u.a.: Gower.
Hacker, J. S., & O'Leary, A. (2012). Shared responsibility, shared risk: Government, markets and social policy in the twenty-first century. New York: Oxford University Press.
Hoffman, D. G. (2002). Managing operational risk: 20 firmwide best practice strategies. New York, NY: Wiley.