Strategic Risk Management

INTRODUCTION

How We Got into This Mess, and the Need for New Tools

Heavyweight champion Mike Tyson once quipped, “Everyone has a plan until they get punched in the mouth.” Wise words for boxers. Even wiser words, perhaps, for executives, who face increased uncertainty when their business gets punched in the mouth by unexpected change. Most executives develop some type of longer-range strategic plan. Almost all have shorter-term operating performance objectives that demonstrate to their numerous stakeholders that they have a pathway to operational and financial success. But when punched in the mouth by shifting customer demands, competitor moves, or changes in cost, these plans can quickly prove ineffectual. Far too many companies then begin to ...