A new book to help senior executives and boards get smart about risk
management
The ability of businesses to survive and thrive often requires
unconventional thinking and calculated risk taking. The key is to make
the right decisions--even under the most risky, uncertain, and turbulent
conditions.In the new book, Surviving and Thriving in Uncertainty:
Creating the Risk Intelligent Enterprise, authors Rick Funston and
Steve Wagner suggest that effective risk taking is needed in order to
innovate, stay competitive, and drive value creation.
Based on their combined decades of experience as practitioners,
consultants, and advisors to numerous business professionals throughout
the world, Funston and Wagner discuss the adoption of 10 essential and
practical skills, which will improve agility, resilience, and realize
benefits:
- Challenging basic business assumptions can help identify "Black Swans"
and provide first-mover advantage
- Defining the corporate risk appetite and risk tolerances can help
reducethe risk of ruin.
- Anticipating potential causes of failure can improve chances of
survival and success through improved preparedness.
- Factoring in velocity and momentum can improve speed of response and
recovery.
- Verifying sources and the reliability of information can improve
insights for decision making and thus decision quality.
- Taking a longer-term perspective can aid in identifying the potential
unintended consequences of short-term decisions.
