Throughout my career—first as a Navy SEAL and now as a tech entrepreneur running a workforce technology SaaS company—I have learned that risk is inevitable, but how we assess and respond to it defines our success. In the SEAL teams, we had a systematic approach to intelligence gathering, combining qualitative and quantitative data analysis to inform critical decisions in high-stakes environments. Every mission required foresight, adaptability, and strategic execution—principles that directly translate to the business world.
Today, as the leader of a company that handles sensitive workforce data, I apply those same risk assessment strategies to cybersecurity and business operations. We conduct continual risk evaluations to safeguard our clients’ information and ensure operational integrity. But cybersecurity is just one element—leaders across industries must adopt a proactive, intelligence-driven approach to risk management. Traditional methods of merely avoiding risk no longer suffice; instead, organizations need to harness risk intelligence to transform uncertainty into opportunity.
The Evolution of Risk Management
There is no shortage of risks threatening organizations; effectively mitigating them has become essential for leaders. Yet, traditional risk management, which focuses on avoiding pitfalls and mitigating losses, is not enough. To thrive in today’s landscape, leaders need risk intelligence, a superpower combining foresight, adaptability, and strategic thinking to turn potential challenges into opportunities.
According to a Deloitte survey, most (88%) organizations use qualitative self-assessments for risk analyses. However, the survey also found that organizations are not widely utilizing predictive risk analytics or quantitative methods, despite the vast amounts of data available. This hesitation could be attributed to a lack of understanding of how systematic and innovative approaches can elevate risk management to new heights. I recently had a conversation with Bill Eckhardt, a highly successful futures trader and the owner of Eckhardt Trading Company, who exemplifies the potential of blending quantitative insights with strategic foresight to drive success.
Understanding Risk Intelligence
Risk intelligence goes beyond the ability to identify and assess risks. It encompasses a mindset that views risk as an inevitable and necessary part of growth. Just like in the SEAL Teams, better intel leads to the greater likelihood of success on the battlefield.
“Leaders with high-risk intelligence don’t just anticipate potential obstacles—they also evaluate their broader implications, weigh options, and make decisions that balance short-term needs with long-term goals,” explains Eckhardt.
Risk intelligence requires:
- Foresight – The ability to predict trends, disruptions, and emerging risks before they materialize.
- Adaptability – The capability to adjust strategies in response to evolving conditions.
- Judgment – The skill to make informed decisions under uncertainty, balancing analysis with intuition.
When honed, these skills enable leaders to navigate crises, capitalize on opportunities, and build resilient organizations.
The Shift From Risk Aversion to Risk Intelligence
Many associate “risk” with a negative connotation, seeing it as something to avoid at all costs. However, risk-averse leaders often miss opportunities for innovation, growth, and competitive advantage.
In contrast, risk-intelligent leaders embrace risk as a necessary component of progress. This shift mirrors the democratization of sophisticated strategies once reserved for elite institutions. “Individuals and organizations with high-risk intelligence tend to be more resilient and competitive. They can respond to market changes and seize opportunities. They make better decisions, allocate resources more effectively and manage disasters well,” says Hersh Shah, CEO of the Institute of Risk Management.
Developing risk intelligence involves cultivating specific skills and perspectives that empower leaders to navigate uncertainty confidently. These include:
1. Situational Awareness
Risk-intelligent leaders stay attuned to the external environment, monitoring trends, market dynamics, and geopolitical shifts. They understand that risks rarely occur in isolation and often stem from interconnected factors.
“By maintaining situational awareness, leaders can identify early warning signs and proactively address risks before they escalate. This requires a commitment to continuous learning, curiosity about the world, and openness to diverse perspectives,” says Eckhardt.
2. Critical Thinking
In a world awash with data, the ability to discern signals from noise is invaluable. Risk-intelligent leaders excel at analyzing complex information, identifying patterns, and assessing the reliability of sources.
3. Resilience
Resilience is the capacity to recover from setbacks and adapt to adversity. Risk-intelligent leaders understand that failure is often a stepping stone to success. Instead of viewing missteps as permanent defeats, they use them as opportunities to learn, recalibrate, and emerge stronger.
4. Collaboration
Effective leaders foster collaboration across teams, leveraging diverse perspectives to assess risks comprehensively. By combining expertise, leaders create strategies that blend historical principles with cutting-edge technology.
How Leaders Can Cultivate Risk Intelligence
Expand Their Knowledge Base
Staying informed about industry trends, emerging technologies, and global developments allows leaders to anticipate potential risks and opportunities.
Embrace Diverse Perspectives
Seeking input from individuals with different backgrounds, experiences, and expertise ensures well-rounded decision-making and reduces blind spots.
Practice Decision-Making
Engaging in simulations, case studies, or real-world scenarios that require navigating uncertainty builds the confidence and experience necessary to make better choices.
Reflect on Past Decisions
Analyzing successes and failures helps identify patterns and refine future approaches to risk.
The Future of Leadership: Risk Intelligence as a Competitive Edge
The democratization of risk intelligence tools and strategies underscores its increasing relevance in today’s fast-moving landscape. As organizations navigate geopolitical instability, cybersecurity threats, and rapid technological advancements, leading with risk intelligence is no longer optional—it is a necessity.
Leaders who hone this skill will create resilient teams, drive innovation, and leave a lasting impact. Just as mission success in the SEAL teams depends on intelligence, adaptability, and execution, business success in the AI-driven world will depend on leaders who can transform risk into opportunity.
Those who master risk intelligence won’t just survive uncertainty—they will thrive in it.