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7 Strategic Risks and Their Countermeasures
- Industry margin squeeze: shift the compete / collaborate ratio
- Technology shift: double bet
- Brand erosion: redefine the scope of brand investment
- One-of-a-kind competitor: create new, non-overlapping business design
- Customer priority shift: conduct quick and cheap market expriments
- New-project failure: Engage in smart sequencing, excess options, stepping stone method
- Market stagnation: generate demand innovation
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6 Steps to Manage Strategic Risk
- 1. Identify and assess your risks
- 2. Map your risks to see company's entire risk profi le
- 3. Quantify your risks
- 4. Identify the potential upside for each risk
- 5. Develop risk mitigation action plans
- 6. Adjust your capital decisions accordingly
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4 Things to Consider When Assessing Risks
- 1. Severity
- 2. Probability
- 3. Timing
- 4. Changing probability over time
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