In the balance: weighing up the effects of risk taking on sustainability

Risk taking is clearly a significant element of entrepreneurial activity. Some would argue that the preparedness to take risks is one of the defining personal traits of an entrepreneur. Risk taking, though, is a complex concept in itself and the motivations which lead firms to take risks may also vary. When the stakes are high and the dynamics are not what they should be things can go spectacularly wrong with negative impacts not only on the firm and its employees but also on the wider society. Many countries still feel the effects of the financial crisis of a decade ago – a crisis which has impacted not only firms but whole nations as they have taken austerity measures to put their economies back on track. Sustainability is another issue which is absolutely central to business as firms look to demonstrate real consideration not just for profit but also for their various internal and external stakeholders, wider society and the planet itself: How are scarce resources used? How responsible is the firm in dealing with its waste? How does it deal with aspects such as equality amongst the workforce? The list goes on.