It is human nature to focus on the risks that are not common knowledge, not within our control, and are not well understood by the experts, as brilliantly noted by Morgan Housel in this article.
In the vast majority of companies, the most common concerns about financial longevity are related to terms such as; strategy, profit & loss, risk management, market share, and forecasting.
According to Housel, investors who focus all their time on high-profile risks, such as whether stocks are going to fall or if a company will miss their quarterly earnings, are missing the far more dangerous “slow- burning risks,” such as fees, trading too much, and not saving enough.
Likewise, leaders who fail to mitigate the risks of complacency, turnover, lack of collaboration, and hostility within their organization will undoubtedly lose their most important asset, their people.
When forecasting for the long-term success of your team, capitalize on the one area of business with all the traction, yet little attention: your culture. Open the channels for communication, transparency, honesty, loyalty, or brand integrity. When you do, your team will help mitigate the greater risks.