Risk-Taking from the Mountain to the meeting room

Part 1: The Individual Perspective – Dancing with Risk

When an individual faces risk – whether it's a solo climber contemplating a difficult route or an employee asked to champion an unfamiliar new project – a complex mix of psychology kicks in. First, people do not all perceive risk the same way. In high-risk sports, there is no single “daredevil” personality profile that explains who participates. A 2024 scoping review found that extreme sport athletes are a diverse bunch, but they share one thing: they accept risk (and the fear that comes with it) as a natural part of the experience​. Fear isn't necessarily a sign to stop; many athletes see it as something to be managed or even harnessed – it’s what creates the buzz. For example, paragliders often acknowledge a healthy fear of heights and turbulence – it keeps them alert – but through training and experience they learn to control that fear rather than be controlled by it. Similarly, in a business context, employees facing transformative change (like a new technology rollout) often feel anxiety (fear) and uncertainty. This fear can manifest as resistance if they perceive the change as a threat to their job or routine. Studies on organizational change note that employees may become cynical or resistant when they feel that change threatens their stability or brings an uncertain future​.

Whether you are a risk sports athlete or an employee experiencing significant change, acknowledging fear as normal is important. An individual can interpret a risky situation as a challenge or a threat. Psychology tells us that viewing a high-pressure situation as a challenge to overcome (rather than an impending threat) tends to produce better performance and more proactive behavior​. In practice, an experienced rock climber might feel the fear but think, “This is really difficult but I can do it,” whereas a less confident novice might freeze up thinking, “I’m scared and I have no idea how to do this.” Likewise, an employee with an optimistic “challenge mindset” might embrace a change initiative as a chance to grow, whereas someone with a threat mindset may fixate on what could go wrong. This appraisal – challenge vs. threat – will shape whether they take the leap or back away.

What makes one individual see challenge where another sees threat? Confidence and experience play a big role. Extreme athletes often spend countless hours building skills and planning for contingencies, which increases their sense of control. Research shows that as skill mastery and self-efficacy increase, risk perception changes – people feel more capable of handling hazards and thus are willing to push into harder challenges​ (Hornby et al., 2024). In one study of elite winter climbers, climbers’ decisions on whether to attempt the most difficult routes were heavily influenced by their perceived ability: if they believed they had the skills and fitness for the climb, they were far more likely to go for it (Jones et al., 2015)​. In fact, as competence grows, extreme athletes often believe that whilst the difficulty has increased, the risk declines. For example, big-wave surfers described how gaining experience over time made them feel that what outsiders call “extreme risk” was actually manageable – their increased competence led them to believe they were taking less risk than before, even as they tackled larger waves​.

There’s a fascinating interplay here: experience builds confidence, which lowers perceived risk, which then emboldens individuals to take on bigger challenges. In psychology, this feedback loop is sometimes described by risk homeostasis theory, which suggests that people have a target level of risk they’re comfortable with and will adjust their behavior to maintain it​ (Chilton and Robonovitch, 2023). A mountain biker might start on easy trails and feel a certain adrenaline “sweet spot”. As the rider’s skill grows, the old trails no longer feel risky enough to be exciting, so they up the ante to steeper, rockier terrain – keeping their subjective ‘risk-feeling’ at an equivalent level. In business, we see parallels: a seasoned project manager who has successfully implemented tough projects before may approach a new high-risk initiative with calm confidence (“We’ve survived worse, we know what to do”). In contrast, someone inexperienced might see even a moderately difficult project as extremely risky. Preparation and planning also bolster confidence. Just as a paraglider double-checks weather conditions and gear before flight to reduce actual danger, a company can mitigate risk by thorough preparation – for instance, researching a new market before a bold expansion. Feeling prepared can turn anxiety into focused excitement.

Of course, personality differences matter too. Some individuals enjoy risk more than others. Psychologists talk about traits like sensation-seeking – the tendency to pursue novel and intense experiences. Extreme sports attract a higher proportion of sensation-seekers, and historically were explained as outlets for “Type T (thrill-seeking) personalities”​ (Martinho et al., 2024). This suggests that part of the population has an appetite for risk; they like that rush of adrenaline. But recent research nuances this view: thrill isn't the only motive. Many extreme athletes are driven by positive goals like achievement, mastery, and even connection with nature, not just a thirst for danger. In fact, a 2024 review (Martinho et al., 2024) emphasized that positive aspects – such as improved planning skills, emotional control, and feelings of freedom – are frequently reported as benefits that justify participation in extreme sports​. In other words, it’s not all about cheating death; it's often about feeling alive in a meaningful way.

Similarly, in corporate settings, individuals vary in how comfortable they are with change and risk. Some employees are natural innovators who seek out stretch assignments and risky projects for the challenge and potential reward. Others are more conservative, motivated by job security or steady progress. Neither is inherently good or bad – a mix of both can be healthy. The key is that individuals who engage positively with risk often do so because they see a personal payoff that matters to them (be it growth, excitement, recognition, or a larger purpose). If the payoff is clear and the individual feels capable, they're more likely to take the risk. The question for leaders is how to connect the positive aspects of risk taking for an individual with the transformation they are leading.

Another aspect of individual risk response is coping with the possibility of failure or injury. Extreme sport athletes train not just to succeed but also, for example, how to fall safely and how to respond under pressure when things go wrong. This builds a form of resilience. They also tend to have a mindset that accepts failures or close calls as lessons rather than reasons to quit. For instance, mountaineers often turn back short of the summit due to weather or exhaustion; the successful ones learn from those turn-around decisions to plan better next time, rather than seeing it as a defeat. In business transformations, individuals similarly need resilience. A product manager might launch an innovative product that ultimately flops – the experience can be traumatic or career-damaging if not buffered by a supportive environment. But if failures are treated as learning opportunities, employees are more willing to try risky initiatives. Research in organizational psychology suggests that when employees feel psychologically safe (more on this in the Team blog), they are less afraid of the interpersonal risk of admitting mistakes​ (Cakir et al., 2022). Thus, individuals respond better to risk in environments where failure isn't fatal to one’s psyche or career.

In summary, at the individual level the psychology of risk is a dance between fear and confidence. Extreme sports highlight how mindset (challenge vs. threat), experience, and personal motivation shape whether a person embraces or avoids risk. These same factors apply to a person’s role at work. A climber atop a peak and an employee tackling a big change must both answer the internal question: “Do I go for it, and why?” Understanding their own perception of risk is the first step.

In Part 2 we’ll see how things change when individuals come together – because risk-taking is not always a solo act.

Dr Dominic Irvine and Professor Emeritus Simon Jobson

The sources for this series of articles on risk are appended to the end of art 3.