The Consequences of Risk-taking

In a recent study, Yale SOM’s Oriane Georgeac, Gerben van Kleef of the University of Amsterdam, and co-authors find that taking risks can either strengthen a leader’s position, or on the other hand, can have the opposite effect.

The researchers were interested in the consequences of risk-taking, which is a rather poorly understood aspect unlike what leads to people taking risks. They wanted to know what happens to people who do take risks, how they then fare in their organizations and what the perception of them is after the risk has been taken.