The challenge of managing and retaining risks:how a paradox perspective reduces harm, realizes opportunities and enriches performance

Managers in many kinds of organizations encounter risks in their daily work. A key challenge involves finding ways to manage risks and prevent harm to individuals or organizations, while retaining risks to realize opportunities. These pressures create a tension between risk management and risk retention that prevails in many sectors and is especially consequential in organizations where failures to address it may be fatal. I use inductive analysis to explore qualitative data from 72 television production company managers whose work has potential for trauma, injury and death as well as success. I find the tension between risk management and risk retention can be understood in relation to perceptions and goals. I contribute to theorizing about organizational paradox by showing how perceptions of the tension differ at the individual level. Some managers perceive the tension as a trade‐off, focus on risk management and emphasize safety goals. Other managers perceive the tension as a paradox and emphasize wider performance goals that encompass safety and risk. These managers use their agency to foster empowerment and creativity. Doing so enhances to both risk management and risk retention, creating a dynamic equilibrium that reduces harm, realizes opportunities and enriches performance.