Benchmark – The Value of Taking Risks

Leaders often operate in risk-averse environments, modeling tepid behavior to followers who, in turn, avoid putting any pressure on the system. This mentality destroys creativity and innovation, often resulting in catastrophic failure. However, when well-reasoned, deliberate risk is embraced, organizations can move forward with extraordinary effectiveness. It is a leader’s responsibility to mitigate possible adverse consequences of the risks. In a complex dynamic system, downstream effects can be difficult to determine, but measures must be taken to assess the impacts of decisions. When a concern is identified, corrective action can be taken. Cultural differences can also play a significant role when leaders engage in risk-taking when making strategic decisions. Leaders must be cognizant of how their behavior can impact collocated teams as well as cross-cultural virtual organizations. In this assignment, you will explore the leader’s role in taking risks when making strategic decisions, evaluating risk mitigation strategies, evaluating organizational structures, and managing risk in collocated and virtual global environments.

General Requirements:

Use the following information to ensure successful completion of the assignment:

  • Instructors will be using a grading rubric to grade the assignments. It is recommended that learners review the rubric prior to beginning the assignment in order to become familiar with the assignment criteria and expectations for successful completion of the assignment.
  • Doctoral learners are required to use APA style for their writing assignments. The APA Style Guide is located in the Student Success Center.
  • This assignment requires that at least two additional scholarly research sources related to this topic, and at least one in-text citation from each source be included.
  • You are required to submit this assignment to LopesWrite. Refer to the directions in the Student Success Center.


Write a paper (1,250-1,500 words) discussing the leader’s role in taking risks when making strategic decisions, evaluating risk mitigation strategies, evaluating organizational structures, and managing risk in both collocated and virtual global environments. Include the following:

  1. A research-based explanation of why it is important for leaders to take risks when making strategic decisions.
  2. A research-based evaluation of risk mitigation strategies. Which strategies most probably reduce the likelihood of adverse effects of the decisions?
  3. A research-based discussion of the organizational structures most conducive to risk-taking. Why are some organizational structures better than others for encouraging risk-taking? (Benchmarks C6.1: Evaluate organizational structures and determine the feasibility of each.)
  4. A description of at least two differences in risk-taking when making decisions in collocated versus cross-cultural virtual organizations.

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