LUCAS BIRDSALL
CALCULATING RISK AND EMBRACING FEAR: LESSONS FOR A SUCCESSFUL LEADER
Throughout my career, I’ve learned that one of the most important skills any business leader can develop is the distinction between risk and fear and whentoutilizeboth.Whileitisindisputable that both are integral to decision-making, they operate on different levels—and understanding how to leverage each can drive success. Whether navigating new investments, leading a team through uncertain times, or strategizing upcoming developments, harnessing fear to make calculated risks is an invaluable skill in yourbackpocket.
Riskvs.Fear:TheDifference ThatMatters
Risk is the quantifiable element of uncertainty. As a venture capitalist at Parabellum Capital Strategies, I assess risks daily, from evaluating a promising startup in the technology sector to managing other portfolio investments. Assessing risk involves the collection of data, thorough analysis, and the weighing ofprobabilities.It’sstrategic.WhenIassess risk,I’mlookingatthefacts:markettrends, financialmodels,andpotentialoutcomes.
Fear,however,isdifferent.It’snotaboutthe hard data; it’s about my internal response to uncertainty. Fear is that moment of doubt before making a major decision, it’s thequestionsthatarisewhen
faced with the unknown, the gnawing feeling in my stomach that makes me wonderifthecallI'vemadeisthebestone. While risk is external and measurable, fear isinternalandsubjective.
TurningFearintoaCatalystfor Success
Although many people regard fear as a sign that something is too dangerous or even wrong to pursue, in my experience, that fear is not a stop sign—it’s a signal that you’re stepping into a place where real growth happens. As a powerful motivator, fear sharpens your focus, and makesyouasktougherquestionsallwhile pushing you to prepare more thoroughly forallpotentialoutcomesofyourdecision.
Instead of letting fear hold me back, I’ve learnedtouseitasaguidepostandasign to carefully consider all the factors in my decision before leaping. Acknowledging that fear and facing it head-on encourages the creation of a resilient strategy and means that you as a leader take your responsibilities to stakeholders seriously.WhenIfeltuncertaintycreepin,it often meant that I was facing an opportunity that could be transformative, bothpersonallyandprofessionally.
Moreover, once you can separate fear from risk you can become a more strategicrisktaker.Divingdeeperintodata leads to stronger evaluations of new products, and new investmentsbalancing fear with hard data leads to calculated and sound risk-taking. When clients see risk pay off their trust in your capabilitiesdeepens,ultimatelyleadingto
bigger dividends and better relationships allaround.
FindingBalance
In the end, business success requires a balanced approach to both risk and fear. Asaventurecapitalist,myjobistoidentify opportunities that are worth the calculated risks. Business growth is rarely comfortable. If you only pursue what feels safe, you limit your potential. In the fastpacedworldofbusiness,wherethestakes, maintaining this mindset separates those who remain stagnant from those who pushforward.
