CHAPTER 12STRATEGIC RISK
RISK QUOTE: There is no reason anyone would want a computer in their home.
—KEN OLSEN, PRESIDENT, CHAIRMAN AND FOUNDER OF DIGITAL EQUIPMENT CORPORATION, 1977
RISK QUOTE: 100 percent of the shots you don’t take don’t go in.
—WAYNE GRETZKY, PROFESSIONAL HOCKEY PLAYER
The first part of this story builds upon the article “Why the Economy Is a Lot Stronger Than You Think ” by Michael Mander, which appeared in the February 13, 2006, issue of Business Week. Prior to the 2008 financial crisis, risk existed but somehow did not seem to be difficult to forecast; however, the crisis has given new urgency to understanding strategic risk.
Strategic risk is the positive or negative impact of risk on an organization in ...