CHAPTER 4

What Causes Risk?

It is generally assumed that if you can get to the root causes of something, then you are well on your way to mastering it. So, that begs the question of “what cases risk?” It is ironic however that this is rarely if ever asked proactively. Instead it is almost always asked after the fact, as in “what caused this mess?,” or “what caused this screw-up?” Notice as well that it is almost never asked after something good happens. Rarely does someone seriously ask, “How were we able to sign this customer to such a large deal, or why did our advertising go viral?” However, we must also remember that there is also upside risk, and in our analyzing the root causes of risk, we must not shortchange it.

What causes risk is a ...

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