Winston Churchill once said, “The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty.” That wisdom perfectly captures what separates great bank and credit union leadership from the merely average.
Picture Philippe Petit in 1974, stepping onto a wire stretched between the Twin Towers, 110 stories above New York City. No safety net. No backup plan. Just calculated risk, meticulous preparation and the courage to take that first step into thin air.
That’s what bank and credit union leadership looks like today. Not the reckless abandon of jumping without looking, but the calculated courage to step forward when others step back. The financial institutions thriving in today’s landscape aren’t playing it safe…they’re taking smart risks that position them for the future.
And you absolutely must take risks, because not taking them is actually the riskiest strategy of all.
The New Risk Landscape
The most successful credit unions and banks are proving that strategic risk-taking isn’t just smart – it’s essential for survival. Take Southwest Financial FCU’s bold partnership with BankSocial to enter the cryptocurrency space. As the GENIUS Act makes crypto mainstream, they positioned themselves ahead of the curve rather than waiting for others to test the waters.
Or consider Cornerstone Financial CU’s innovative buy now, pay later option. While other institutions hesitated, they recognized a market opportunity and acted decisively to meet member needs in a new way.
These aren’t reckless gambles. They’re calculated moves by leaders who understand that the biggest risk is becoming irrelevant.
The Hidden Cost of Playing It Safe
The financial institutions struggling most today aren’t the ones that took smart risks and failed. No, they’re the ones that avoided risk altogether. They’re losing consumers to fintech startups and watching younger demographics choose alternatives.
Despite wanting to “get younger,” many community institutions have trouble welcoming these folks into the fold. They want the demographic…but risk appetites need to be adjusted to actually gain the demographic.
Lending to younger consumers is inherently higher risk. And yes, you might see increased delinquency rates initially. But if you price it correctly and serve this demographic well, you build relationships with consumers who will be with you for decades (without destroying your balance sheet).
The lifetime value far outweighs the short-term risk. But only if you have the courage to act.
The Leadership Risk Advantage
When bank and credit union leadership embraces strategic risk-taking, the benefits compound over time:
- Market Differentiation – Risk-taking leaders create unique value propositions that set them apart in crowded markets.
- Innovation Culture – Organizations that embrace calculated risks develop cultures where innovation thrives, attracting top talent.
- Future-Proofing – Leaders position their institutions for tomorrow’s opportunities rather than scrambling to catch up later.
- Consumer Loyalty – Consumers gravitate toward institutions that anticipate their needs and offer innovative solutions.
- Competitive Advantage – Early adopters of new strategies capture market share that’s difficult for competitors to reclaim.
- Leadership Development – Teams that work in risk-positive environments develop stronger decision-making skills.
- Revenue Growth – Calculated risks often open new revenue streams and market opportunities that conservative strategies miss.
The Art of Calculated Risk
Here’s what separates Philippe Petit from someone who just decides to walk across a wire without preparation: calculated risk requires both courage and competence. Petit spent months planning, studying wind patterns and preparing for every possible scenario.
The same principle applies to bank and credit union leadership. Strategic risk-taking isn’t about throwing caution to the wind – it’s about making informed decisions that others are too afraid to make.
This means investing time in understanding market trends, consumer behavior and competitive landscapes. It means building teams that can execute new strategies effectively. It means having systems in place to monitor results and adjust course when necessary.
Most importantly, it means accepting that some risks won’t pay off immediately…or at all. But the institutions that consistently take smart risks will outperform those that don’t, even when individual initiatives fail.
Leading from the Front
The best bank and credit union leadership understands that their role isn’t to eliminate risk. It’s to take the right risks at the right time for the right reasons. This requires leaders who can balance prudent financial management with strategic boldness. Who can learn from failures without being paralyzed by them.
Like Philippe Petit taking that first step onto the wire, great leaders in financial services understand that the biggest risk is never stepping forward at all.
Train your current and future leaders to take smart risks. Book a free consultation with On The Mark Strategies and let’s perform leadership training that tackles those “soft skills” with hard impacts on your organization.
