Management model – Trust -v- Risk

Introduction

The Trust vs. Risk matrix is a management tool that can help you determine your entrepreneur profile based on your attitude to risk and your attitude to trust.

Pros

This simple matrix can give you an idea of the type of innovator you are, and the qualities you need to develop in order to maximize your chances of success.

Cons

Innovation and enterprises can take various shapes and forms. This matrix lays out a clear hierarchy between profiles, which may not be applicable in all circumstances. Individualistic profiles have succeeded before, and sometimes a conservative, evaluating strategy is not the last option to consider.

Summary:

Evaluating

With a low inclination toward both risk and trust, you are probably spending a lot of time weighing your options and evaluating risk. You tend to be conservative in your choices and the people you deal with. This is a reasonable approach but it doesn’t leave much room for opportunities and innovation.

Team Player

As a team player you tend to trust people and have a low propensity for risk taking. Your interaction with people is one of your strengths and you are conservative in your choices. You will no doubt be rewarded for your dependability but you are less likely to create innovation opportunities on your own.

Individualistic

With a high-risk profile, but a tendency not to trust people, the individualistic person will encounter difficulties in their endeavors. Risk taking is an important part of being an innovator, but the inability to trust others is often a major hindrance. The individualistic person will run in at least two problems: the vital input and perspective you can only get from others, and the support and possibly the endorsements needed to turn an idea into a successful project.

Entrepreneur, Innovator

An innovator understands the importance of getting out of one’s comfort zone and taking appropriate risks. Entrepreneurial aspirations almost always have to be coupled with management skills. The ability to delegate, empower and lead is crucial and requires a great deal of trust in people.