Manage uncertainty and risk

Make decisions with a clear understanding of what you know, what remains uncertain, and what could happen if your assumptions are wrong. Test the most important assumptions through small trials or limited commitments when practical.

Consider plausible setbacks and decide in advance how you would respond. Give more scrutiny to choices that are expensive, difficult to reverse, or capable of seriously harming the business.

For smaller, reversible decisions, use enough information to act and learn promptly. Include the cost of waiting in your judgment.

Keep potential losses within what the business can absorb while preserving room to pursue worthwhile opportunities.