Please write a response ASAP to the below discussion post for PRM 516.
I do think that most successful leaders will demonstrate a low risk tolerance. If a style is too risk averse, then there may be stagnation and a vast reduction in innovation. If a style is too accepting of risk, then operations may be overexposed to severity and probability of hazards. So much of leadership involves risk management. This consists of cross relating the severity of a hazard with the probability of its occurrence. This assigns a value to the hazard and then a sufficient mitigation may be applied to reduce the risk to an acceptable level. This involves in knowing what is an acceptable level. This takes into play the art of risk management.
The style of the leader affects the rest of the team. A leader that has no experience in the proper application of risk management may not know what is an acceptable level of risk. A manager that accepts a higher level of risk may result in the desired result but the probability of success is reduced by exposure. I think a good leader must have a low tolerance for risk. This does not mean that a manager should wait until there is no risk to operate. A manager that has the skill in developing methods reduce risk to an acceptable operational level can hedge success.