New research shows how business leaders make decisions

This article is part of our Risk + Reward series. Capital One Business and Inc. partnered to survey 349 business leaders in November 2025 and explore the factors that affect how they weigh business risks and rewards in navigating modern business landscapes.

Risk tolerance was named the No. 1 trait business leaders need in order to build and grow a small or midsize company, according to a new survey of 349 U.S. business leaders conducted by Capital One Business and Inc.

Forty-nine percent of respondents cited risk tolerance as the top characteristic for success, followed by high energy (44%) and personal fortitude (37%). Interestingly, these more inborn personal qualities beat out traits typically associated with business success, including thinking strategically (36%), failing fast (29%), surrounding yourself with the right people (28%) and managing time efficiently (20%). 

However, risk tolerance does not signal a willingness to take impulsive risks. Business leaders who are more comfortable with risk are often able to make decisions more quickly, are more willing to invest in untested strategies or new markets, and are more likely to foster a culture of innovation.

The research found that business leaders described their decision-making as fast (76%), risk tolerant (58%), incremental (56%), more individual than collaborative (54%) and long-term focused (51%). Interestingly, despite all the investments being made in technology and AI, only 38% of leaders described their decision-making process as data driven, suggesting that they more frequently go with their gut.

The economy tops the list of major risks for the foreseeable future, including inflation and interest rates (46%), but what keeps leaders up at night has more to do with poor decisions they may make themselves. Here’s what they’re worrying about now:

• Overinvesting in their workforce (43%)
• Selecting the wrong financing options (41%)
• Having high levels of debt (29%)
• Overinvesting in technology (36%)
• Selecting the wrong investment strategies (36%)
• Not being able to access capital (33%)

Given the number of resources being devoted to technology, it is no surprise that business leaders are worried about the risk of a misstep there. Namely, they are concerned about selecting the wrong technology (39%), moving too slowly with technology adoption (38%) and moving too fast (37%). But all of those are second only to the fear of a cyberattack, which is a concern among half of the respondents.

It is important to distinguish between calculated risk tolerance and hasty risk-taking, which these leaders are not demonstrating. In fact, 56% of business leaders surveyed determined that the level of uncertainty they are facing when making growth-related decisions is very low (9%) or low (47%). They are fairly confident in their ability to make smart decisions in the current environment.

Keep in mind that risk tolerance is not about ignoring warning signs or danger; it’s about moving forward despite uncertainty and making an educated guess about the best path forward.

Build your risk capacity. To cushion against any unexpected financial setbacks, set up lines of credit and increase cash reserves. At the same time, diversify revenue streams and pursue partnerships and joint ventures to share the risk.

Align your team around risk. Make sure your team understands your position with respect to calculated risks. Communicate your personal risk philosophy so they understand where the line is drawn and are encouraged to take the level of risk you want.

Test before committing. When you can, reduce the downsides of decisions through pilot programs and beta testing. Establish decision thresholds in advance to make go/no-go decisions easier in the moment. Smart business leaders are fast decision-makers, but the best decisions are informed ones.

Read more about the factors that affect how business leaders make decisions.