Page 86 - Risk Management in current scenario
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Importance of Strategic Risk
Management in Corporate
Success
Introduction
This article discusses the current form of strategy making and advocates
the need to embed risk management within the strategy making exercise
to reduce strategy failure rate. This article assumes that the reader
understands the enterprise risk management process.
Strategy and the Risk
The strategic decision in the corporate sector is about creating a path
for the future of the organization towards the choice of buyer segment
within competition through cost leadership and product differentiation
delivered through the most optimized resources. This proposition should
help the business achieve sustainable competitive advantage which is
difficult for competitors to copy. However, the strategy is exposed to
many risks through internal and external environments. The external
environment brings risks from macroeconomic factors, general business
environment, industry competitive environment etc. The internal
environment brings risks from organization policies, culture, political
dynamics, leadership etc. The strategist attitude, mindset, risk appetite
and strategic skills bring additional risks to strategy.
The future is never predictable and uncertainties always remain.The success
of the strategy making and execution depends on scanning the horizon of
84 | Risk Management in Current Scenario
