176 Posts Found

[Risk opportunities are] largely ignored because risk has been presented as a downside, not necessarily as an upside. What is fascinating about risk and understanding your competitive position against risk is that if your competitor is to falter—if you could assist your competitor in some demise—their assets (be they market share, factories, brands, etc.) get transferred. And in the context of risk, if we … [ Read more ]

Content: Quotation | Author: Russell Walker | Source: Kellogg Insight | Subject: Risk Management

In a highly competitive environment, companies can focus too much attention on maximizing profits in the short term, while neglecting basic principles of the risk management process. Many bankruptcies, including those of big and successful companies listed on the New York Stock Exchange (NYSE), have stemmed from a failure to plan for the downside of risk. Enterprise stability and a company’s chance for survival can … [ Read more ]

Content: Article | Author: Zbigniew Krysiak PhD | Source: Graziadio Business Report | Subject: Risk Management

The defining characteristic of future change, according to Nassim Nicholas Taleb, is that it is impossible — and foolhardy — to try to predict it. Nonetheless, the dominant impulse among policymakers and so-called experts is to attempt to reduce volatility rather than deal with it more productively. In his new book, Antifragile: Things That Gain from Disorder, Taleb argues that in order for individuals, institutions, … [ Read more ]

Content: Thought Leader | Author: Nassim Nicholas Taleb | Source: Knowledge@Wharton | Subjects: Management, Personal Development, Risk Management

A new study finds that underestimating strategic risk is the number one cause of shareholder value destruction. But it doesn’t have to be.

Content: Article | Authors: Christopher Dann, Christopher Pencavel, Matthew Le Merle | Source: strategy+business | Subjects: Risk Management, Strategy

Numerous companies’ attempts to engage directors in risk management have failed either because those attempts themselves were not properly conceived or directors – and the companies – lacked specific tools to meaningfully involve directors. These authors advance three highly practical and effective tools that will enable boards to make that meaningful contribution to the risk management discussion.

Content: Article | Authors: Alex Wittenberg, Tom McDowell | Source: Ivey Business Journal | Subjects: Corporate Governance, Risk Management

Disrupter analysis can help assess the risks of future catastrophic events.

Content: Article | Author: Matthew Le Merle | Source: strategy+business | Subject: Risk Management

Almost all companies today maintain a dedicated team of professionals to manage talent, and many also employ at least a few full-time professionals to manage risk because both are major agenda items for boards and senior executives. But few organizations systematically encourage their talent and risk managers to work together collaboratively to pursue broader goals, specifically enhancing enterprise value.

We believe talent and risk are intimately … [ Read more ]

Content: Article | Source: Deloitte | Subjects: Human Resources, Risk Management

The concept of Enterprise Risk Management (ERM) sprung from the shortcomings of Value Based Management (VBM). This approach does not take into consideration the relative change between risk dynamic and the dynamic of value. Forgetting this type of analysis led in the past to instances of a very satisfactory and high increase in value, even though the company went bankrupt. Therefore, in the business environment, … [ Read more ]

Content: Quotation | Author: Zbigniew Krysiak PhD | Source: Graziadio Business Report | Subject: Risk Management

When one company merges with another, common business wisdom suggests that the newly combined firm has a lower risk of going into default, because the transaction gives the merged corporation greater diversity than the two individual participants. But according to a study by Craig Furfine, a clinical professor of finance at the Kellogg School of Management, and Richard Rosen, of the Federal Reserve Bank of … [ Read more ]

Content: Article | Source: Kellogg Insight | Subjects: Mergers & Acquisitions, Risk Management

Business models help support strategic goals, but too often executives don’t inject them with the necessary dose of creativity to bring about real success, according to new research by INSEAD professors Karan Girotra and Serguei Netessine.

Content: Article | Author: Mrinalini Reddy | Source: INSEAD Knowledge | Subjects: Innovation, Risk Management

How rational managers came to be seen as reckless risk takers…
…but have been behaving sensibly all along

Content: Article | Authors: Jeff Schulz , Michael E. Raynor, Mumtaz Ahmed | Source: Deloitte Review | Subject: Risk Management

Conventional risk management has focused on avoiding the risks to a business strategy, rather than understanding and managing the risks of the strategy itself. While the protection of existing assets is necessary, it is not sufficient for competitive advantage. Unfortunately, when risk is defined by an organization only as the failure to adequately protect existing assets and prevent loss (unrewarded risks), the rewards of reasoned, … [ Read more ]

Content: Quotation | Authors: Frederick Funston, Henry Ristuccia, Stephen Wagner | Source: Deloitte Review | Subject: Risk Management

Conventional risk management has focused on avoiding the risks to a business strategy, rather than understanding and managing the risks of the strategy itself. While the protection of existing assets is necessary, a diet of pure risk aversion likely will lead to extinction.

Content: Article | Authors: Frederick Funston, Henry Ristuccia, Stephen Wagner | Source: Deloitte Review | Subject: Risk Management

To avoid swinging between over-exuberance and excessive caution, set a disciplined target for your desired investment outcomes.

Content: Article | Authors: Alan Gemes, Peter Golder | Source: strategy+business | Subject: Risk Management

High performance requires a keen understanding of not only a company’s appetite for risk but also its capacity to manage that risk effectively. Companies that walk that fine line between the two can better protect themselves and pursue new marketplace opportunities.

Content: Article | Authors: Bill Spinard, Craig Faris, Paul F. Nunes, Steve Culp | Source: Outlook Journal (Accenture) | Subject: Risk Management

Businesses collect mountains of data and spend vast sums storing and protecting them. Yet excess data carry a steep price tag for storage, maintenance, and protection, and incalculable potential costs in terms of liability. Similarly, most companies guard their intellectual property at great expense. Yet many efforts to safeguard intellection property are ineffectual or even counterproductive – depressing the value of that which they hope … [ Read more ]

Content: Article | Author: Ted DeZabala | Source: Deloitte | Subjects: IT / Technology / E-Business, Risk Management

Risk-assessment processes typically expose only the most direct threats facing a company and neglect indirect ones that can have an equal or greater impact.

Content: Article | Authors: Eric Lamarre, Martin Pergler | Source: McKinsey Quarterly | Subject: Risk Management

The great 19th-century philosopher Georg Wilhelm Friedrich Hegel taught us that quantitative changes ultimately become qualitative changes. The more risk we take because we believe the environment is low-risk in character, the less the environment continues to be low-risk in character.

Content: Quotation | Author: Peter L. Bernstein | Source: Harvard Business Review | Subject: Risk Management

How can today’s leaders become more adept at predicting, assessing and managing risk? The answer lies in enhancing one’s risk intelligence – reducing uncertainty by making strategic choices based on knowledge developed through observation, exploration, learning and sharing.

Content: Article | Author: Jim Murray | Source: LeaderValues | Subject: Risk Management

As you gain more and more responsibility in organized life, you become more and more of an amateur, because you’re less and less specialized. Because of the complexity of work, you have to count more on others. But that also means you’re more exposed to risk. When you get to be the CEO, nobody gives you a perfect setting in which to make a decision. … [ Read more ]

Content: Quotation | Author: Max De Pree | Source: Leader to Leader | Subjects: Leadership, Management, Risk Management