THE WINDOW OF MANAGEMENT, NOT TO BE SERVED BUT TO SERVE. Risks are implicit in any organization’s strategy, whether management and the board are aware of them or not. Risk is inherent in any decision to expand into new markets, introduce new products, acquire a different line of business, build a new plant, or invest in uncharted research and development activities. The point is that a company’s strategic direction and its ability to execute on that direction are both fundamental to its risk-taking. Therefore, risk assessment should be an integral part of the strategy-setting process. Strategic risks should be supported or rationalized by management’s determination that the upside potential from taking those risks is sufficient to warrant acceptance of the downside exposure.
Posted on: Sat, 09 Nov 2013 09:30:39 +0000
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