27/06/2016
Why did risk management tools fail to predict the latest crisis in which we all went through? Many studies and risks experts have found one common conclusion: managers relied too heavily on short-sighted models and too lightly on their own expertise and insight. Indeed, if anything is to be learned from crisis, it is that nothing substitutes for human judgment in evaluating business risks and setting the right course of action.
Executives and managers must understand the risks associated with their business. Monitoring key economic indicators will provide insights into potential structural risks that may impact the company financial statements. Then, deciding which risks to mitigate may optimize the company competitive advantage.
In this paper, we will firstly evaluate risks that companies are facing, secondly we will present the biases of current risk methodologies, and finally we will discuss how using insight and foresight may be a powerful tool to mitigate risk and to gain competitive advantage.
http://www.strategize-venture.com/ #!Shaping-your-Strategy-by-turning-Risk-Management-into-a-Competitive-Advantage/m816c/576a50b60cf2710e3e691032
Why did risk management tools fail to predict the latest crisis in which we all went through? Many studies and risks experts have found one common conclusion: m...