Have skin in the game
Meaning
To have a personal stake, financial or otherwise, in the success or failure of an enterprise, ensuring commitment and shared risk.
Origin
The phrase 'having skin in the game' evokes the visceral sense of personal risk in a contest or venture, though its precise coinage is elusive. It gained significant currency in the late 20th century, especially within financial markets and risk management. The metaphor highlights the critical importance of decision-makers bearing personal consequences for their actions, much like a gambler putting their own money—their 'skin'—on the table. This philosophy promotes true accountability, ensuring that nobody profits from risk while insulating themselves from its downside.
Examples
- The CEO ensured all senior managers had skin in the game by tying their bonuses directly to company performance.
- Investors feel more confident when they know the founders themselves have significant skin in the game.