Values & Risk Management Part 1/3 - Reframing our Relationship with Risk
- Helene Peters
- Oct 25, 2025
- 7 min read
Updated: 7 days ago
Growth, uncertainty, and risk are likely to be inseparable concepts. Navigating them intentionally can be scary - and powerful. This 3 part series explores how values, aspirations, and risk attitudes intersect to shape personal and organisational learning and development journeys - especially in growth related contexts.
How much risk does it take to grow? How much risk are we willing to - or can we - take? Are we scared or excited when daring?
PC: DESIGNED BY THINK DIFFERENT
No Learning & Development without Risk.
Connecting the dots: Learn to moderate.
In part 1/3, we introduce some learning- and risk related fundamentals, setting the stage for relevant concepts that will strengthen our understanding of the relationship between values, perceived risk and risk attitudes in the following parts.
Intentional values & risk management: leaving the comfort zone...
We all seem to agree that growth happens beyond the comfort zone, where things are less certain, change is more constant, we start with 'less to no clue' and we are more likely to fail first, prior to succeeding.
Hence, putting ourselves intentionally into this zone can almost seem like a terrifying choice at first. But what if...we acknowledge that exactly these uncertain characteristics can trigger an experience - a so called optimal experience - that can engage us to a point of losing sense of time and space?
No risk, no learning, no fun.
No learning & development without risk.
We are all dealing with risks in life. Some more, some less. Some are risk - or thrill - seekers, others the exact opposite. Prior to elaborating on the idea of linking intentional values & risk management to optimal experiences, we have prepared a brief introduction of key concepts like 'comfort zone', 'flow' & 'risk appetite' - in order to get the basics straight and make sure we speak the same language.
Comfort, Stretch, and Panic Model*
The Comfort, Stretch, and Panic Model is a framework used to illustrate how individuals experience different levels of challenge and engagement, which impacts their ability to learn and grow. This model, often referenced in personal development and educational contexts, categorizes experiences into three distinct zones: the comfort, the stretch and the panic zone.
Senninger, T. (2000). The Learning Zone Model: A Framework for Expanding Your Comfort Zone.
Comfort Zone:
This is where individuals feel safe, secure, and at ease. Activities in this zone are familiar, routine, and do not create stress or anxiety. While it fosters stability, staying exclusively in the comfort zone can lead to stagnation and limited personal growth.
Stretch Zone (Learning Zone):
In this zone, individuals experience manageable challenges that push their limits without overwhelming them. It is characterised by a balance between challenge and skill, where individuals are outside their comfort zone but not in a state of panic. This zone is ideal for learning, growth, and the development of new skills.
Panic Zone:
This is where challenges exceed an individual's current skills or coping abilities, leading to feelings of anxiety, fear, and stress. In this state, learning is often hindered because the individual is focused on survival rather than growth. Prolonged exposure to the panic zone can lead to burnout and decreased motivation.
Flow*
Flow is a psychological state in which an individual is fully immersed and engaged in an activity, experiencing deep focus, enjoyment, and intrinsic motivation. This state is characterized by a balance between the challenge of the task and the individual's skills, leading to a sense of timelessness and complete absorption. Flow often results in optimal performance and personal satisfaction.
Csikszentmihalyi, M. (1990). Flow: The Psychology of Optimal Experience.
Risk Appetite*
Risk Appetite refers to the level of risk an individual, organisation, or entity is willing to accept in pursuit of goals and objectives. It reflects the balance between potential benefits and potential losses and is influenced by factors such as experience, resources, and the specific context. In decision-making processes, understanding one’s risk appetite helps determine the appropriate course of action, whether conservative, daring, or full risk.
Low Risk Appetite:
Preference for secure, low-uncertainty decisions, often associated with avoiding potential loss or disruption.
Moderate Risk Appetite:
Willingness to take measured risks where the benefits outweigh potential downsides, with reasonable mitigation plans in place.
High Risk Appetite:
Acceptance of significant risks in pursuit of high rewards, often involving bold decisions and the potential for substantial gains or losses.
What is your take on risk - in general? And in context of...?
Connecting the dots: let's learn to moderate.
So far, we have three different concepts with similar characteristics. Let's connect the dots.
No risk = no growth - no flow?
So by now we have learned that growth and progress imply learning. Learning often happens outside of the comfort zone, where we are faced with an increased amount of uncertainty and challenge and as such, an increased amount of perceived risk (risk = 'the effect of uncertainty on objectives').
Accordingly, unless life forces us to learn through its sometimes unexpected and 'coincidental' events, stepping out of the comfort zone intentionally means being willing to take risks.
But what if we are naturally not comfortable with taking risks? Can we learn to increase our risk appetite on demand? Can we become more comfortable with risk?
Learn to dare.
Too much risk = no growth - no flow!
On the other hand, the opposite can also occur: Navigating beyond comfort and stretch in continuous panic or stress mode can lead to burnout, especially when we are naturally more of a risk averse type.
Accordingly, stepping back into the comfort zone intentionally means being willing to slow down and to retreat - to decrease risk.
In this scenario, our comfort zone can be a place to recharge, to reflect and to integrate experiences consciously. Knowing how to actively rebalance is also a big part of learning and in particular: self development.
Learn to rebalance.
If we really want to...
We like to promote the idea that we can learn to moderate, if we really want to! That means: that our desire to change needs to be bigger than the desire to stay the same.
Usually, this desire is triggered by a sense of unease with the current status quo. Alternatively, or in addition, it can be triggered by increasing insights into what is really important to us and how we really would like to see ourselves in visions of the future.
The more we believe in something, the more we are willing to do about it.
So what if we don't know what is really important to us - yet? And how we would really like to picture our future alternatively? And what role does 'believe' have in this context?
No risk evaluation and moderation without: context, values & visions.
Before we invite you to move forward to Values & Risk Management Part 2/3 - About Values, Aspirations & Risk Profiling - and explore some answers to these questions, we would like to invite you to think about your current values - code & your ideal vision of the future first.
Of course, we are here to facilitate in case you might need some support.
Best wishes✨
Helene with SPARKS
TIP: Connect to learn more about our Values & Visioning sessions which are designed to uncover essential layers of (team) decision drivers.
#RiskMindset #PersonalGrowth #LeadershipDevelopment #GrowthMindset #ValuesDriven #DecisionMaking #SelfAwareness #ComfortZone #EmbraceRisk #LeadershipSkills #InnovationMindset #CareerGrowth #Contextscanner #ValuesDrivenJourney #StrategyFromWithin #RiskProfiling #BalancedRiskPortfolio #LearnToDare #LearnToModerate
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About our Values & Risk Series
Is your Risk Attitude fit for Purpose?
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Navigating successfully between growth and protection requires a good understanding about what is dear to us - a.k.a. what we value - and how comfortable we are with taking risks (as a collective) - a.k.a. dealing with uncertainty.
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(Organizational) Burnout/ Anxiety/ Fatigue are partly a consequence of self - UN - awareness. Boundaries and energy management are becoming crucial concepts when learning how to shield oneself in a world of ever increasing and changing expectations and uncertainty.
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Our Values & Risk Series is designed to explore the opportunities of (collective) risk culture, improve goal setting and nurture initiatives in line with one's risk profile and essence.
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Additional Readings
Brown, B. (2012). Daring Greatly: How the Courage to Be Vulnerable Transforms the Way We Live, Love, Parent, and Lead. New York: Gotham Books.
Discusses the importance of stepping outside the comfort zone to embrace vulnerability and achieve growth.
Senninger, T. (2000). The Learning Zone Model: A Framework for Expanding Your Comfort Zone. Retrieved from https://learningzonemodel.com.
Introduces a practical model for understanding how people learn by navigating through comfort, stretch, and panic zones.
Yerkes, R. M., & Dodson, J. D. (1908). The Relation of Strength of Stimulus to Rapidity of Habit-Formation. Journal of Comparative Neurology and Psychology, 18(5), 459-482.
Describes the Yerkes-Dodson Law, which supports the idea that moderate levels of challenge improve performance, while excessive challenge can hinder it.
Csikszentmihalyi, M. (1990). Flow: The Psychology of Optimal Experience. New York: Harper & Row.
This seminal work introduces and elaborates on the concept of flow, describing the conditions under which flow occurs and its impact on happiness and performance.
Nakamura, J., & Csikszentmihalyi, M. (2002). The Concept of Flow. In C. R. Snyder & S. J. Lopez (Eds.), Handbook of Positive Psychology (pp. 89-105). Oxford: Oxford University Press.
This chapter provides a detailed analysis of flow, including its psychological components and how it fosters well-being and personal growth.
Moneta, G. B., & Csikszentmihalyi, M. (1996). The Effect of Perceived Challenges and Skills on the Quality of Subjective Experience. Journal of Personality, 64(2), 275-310.
This empirical study investigates the conditions that give rise to flow and the role of balancing challenges with skills in achieving this optimal state.
Hubbard, D. W. (2009). The Failure of Risk Management: Why It's Broken and How to Fix It. Hoboken, NJ: John Wiley & Sons.
Discusses risk appetite within the context of decision-making and the flaws in traditional risk assessment models.
Hillson, D., & Murray-Webster, R. (2007). Understanding and Managing Risk Attitude. Aldershot: Gower Publishing.
Explores how risk attitudes and appetites influence decision-making and project management.
International Organization for Standardization (ISO) (2018). ISO 31000: Risk Management – Guidelines. Geneva: ISO.
Provides a framework for establishing risk appetite and integrating it into organizational risk management strategies.
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