Strategic Risk Management
Strategy is hard. Risk Management is hard. Putting the two together creates a ‘wicked’ combination, the size and complexity of which will tax even the best of minds. To succeed, a smart Board will consider the problem of how to develop and then execute a meaningful strategy in advance of when they need to.
Strategic Risk Management is aimed to help Boards to stop and think before they leap, in the hope they will be more likely to succeed when they do decide to make major strategic decisions.
The Board of every financial institution has to have a strategy. But in an ever-growing and crowded marketplace, what should such a strategy look like?
Unfortunately, there are no easy answers to that question, as the strategic options are limited by: the position that the firm holds in the industry today; the markets in which it operates; the capabilities (capital, assets and skills) that they have today and, importantly, can get access to in the future; trends in the industry; and, of course, what competitors are doing or are planning to do. All of these external and even internal pressures are to some degree uncertain, unknown and sometimes unknowable. There is, as a result, substantial risk in every strategic decision.
This book, about the management of Strategic Risks, is divided into three distinct parts:
1) Part One: which introduced some of the key concepts in the book, in particular Strategic Risks and the enormous losses to shareholders’ wealth that can result from failures to manage such risks. The chapters in this part also discussed concepts such as Business Model, Strategic Positioning Risk, and Strategic Execution Risk.
2) Part Two: described some case studies of Strategic Risk, in particular failures of large firms as a result of flawed growth and acquisition strategies. The difficulties of executing innovation and technology strategies were also discussed using appropriate case studies.
3) Part Three: which discussed some of the tools and techniques for the management of Strategic Risks based on already widely used models from strategy development.
Author Patrick McConnell, a Visiting Fellow at Macquarie University Applied Finance Centre in Sydney (where he teaches Masters-level courses on Strategic Risk Management), has been publishing and teaching in the area of Strategic Risk for several years. Dr McConnell also has over 30 years’ experience in Information Technology and Risk Management and has been employed by, and consulted for, the Australian government in addition to major banks and corporations in the US, Europe and Australia. Strategic Risk Management provides a balanced combination of both hands-on experience and theoretical reasoning, explaining the organisational (re)alignments to ensure that the necessary changes are made.
|Publication date||24 Jun 2016|
|Size||155mm x 235mm|
PART I: STRATEGY AND STRATEGIC RISK
- What is Strategy?
- What is Strategic Risk?
- Strategic Governance Risk
- Different Strategies, Different Risks
- Strategic Risk Assesment
- Organic Growth Strategies
PART II: CASE STUDIES IN STRATEGIC RISK
- Acquisition Strategies
- Productivity Strategies
- Innovation Strategies
- Restructuring Strategies
- Evolution of Strategic Risks – A Case Study
- Summary of Strategic Risks from Case Studies
PART III: TOOLS AND TECHNIQUES FOR RISK MANAGEMENT
- Strategic Risk-Management Framework
- Managing Strategic Positioning Risks
- Managing Strategic Execution Risks