1.11. Key Insights for Evaluating Risk
In summary, key practical insights from the chapters on evaluating risk are:
- Take a systems view of risk—the environment and enterprise capabilities. Scenarios are your central tool for understanding situations in time.
- Take a prospective, not retrospective, view of risk evaluation.
- Understand the environment better than competitors. This is a requirement in strategy and operations. It’s also a requirement in managing risk to your strategy and operations.
- Understand the business. A deep understanding of how it works is essential to finding and fixing risks before they cause damage, and to using your capabilities to take advantage of opportunities in a changing environment.
- Look for change. ...