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Worst Case Scenario Resource Allocation (EditED)

When considering whether or not to pursue a ministry idea, define the worst-case scenario.

Fear is usually irrational, which is just part of human nature.

Stop taking the bait. Identify exactly what you are afraid of so that you can figure out what is the worst case-scenario is.

Be aware that risk is only unwise when it is an uneducated risk. When you take educated risks, you are still using your ministry resources wisely.

Once you know your fear, ask yourself a series of questions.

Risk Reversal: What could I do to completely undo the negative consequences of my action?

Risk Mitigation: What could I do before or after to mitigate the damage of my action?

Acceptable Risk: Am I willing and able to lose whatever the worst-case scenario will cost me?

Unacceptable Risk: If the absolute worst-case scenario occurs, will my ministry live to fight another day?

Risk Reward Ratio: Does the reward outweigh the risk? Is there an A-symmetric opportunity to the upside? (Don’t take the risk for an even trade where the returns are the same as what you put in.)

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