Risk management isn’t just a matter of complex financial models and formal risk-management systems. It is an essential value-creating activity that should inform the strategic debate at every level of the organization. Here are ten basic principles that should govern “the art of risk management.”
Content: Article | Authors: Fabian Günther, Frank Plaschke, Marc Rodt, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subject: Risk Management
Given the instability and unpredictability of the new global reality, companies must learn to be as agile and adaptable as possible. In this new era of heightened economic volatility, planning becomes more, rather than less, critical. BCG highlights ten guiding principles for improving effectiveness and efficiency in the planning process.
Content: Article | Authors: Fabian Günther, Fabrice Roghé, Frank Plaschke | Source: Boston Consulting Group (BCG) | Subject: Management
Furor over banker’s pay has put the spotlight on executive compensation. What appears to be a disconnect between executive pay and a company’s results has inspired renewed demands that companies “pay for performance.” The critics are on to something—and it isn’t limited to the financial sector. There is something wrong with the way most companies approach executive compensation. Before companies can fix it, however, they … [ Read more ]
Content: Article | Authors: Frank Plaschke, Gerry Hansell, Lars-Uwe Luther, Mathias Schatt | Source: Boston Consulting Group (BCG) | Subject: Corporate Governance
There is one problem with all forms of variable pay—whether short term or long term, based on cash or on equity. There is always a ﬁ nancial upside for executives (and sometimes that upside is quite high), but there is not an equivalent downside. To be sure, executives may not receive a bonus if they do not beat their targets in the company’s plan, … [ Read more ]
Content: Quotation | Authors: Frank Plaschke, Gerry Hansell, Lars-Uwe Luther, Mathias Schatt | Source: Boston Consulting Group (BCG) | Subject: Corporate Governance