Frontier of risk is a way of thinking about risk in the context of goal
setting, you want a goal to not exist in the “totally confident” realm
with no risk but also in the “unknown path, possibly unachievable
zone1. The frontier of risk is the zone between these two
poles: Two
far in the former direction and your team is playing it safe, too far in
the other direction and you risk consistently missing goals and
demoralizing your team. In order to help set the goal, use clarifying
questions to move your self between these poles1:
Zones | |
---|---|
Understanding Risk | Do we understand the risks that will keep us from achieving this goal? |
Dependency Risk | Do we have the right resources to hit the goal? |
Execution Risk | Can we do this goal? |
Strategic Risk | Does the strategy work? If it doesn’t this goal won’t be achievable. |
1. Mehta, R. An alternative to OKRs: How to set and achieve ambitious goals. https://www.ravi-mehta.com/an-alternative-to-okrs-how-to-set-and-achieve-ambitious-goals/ (2024).