Risks are implicit in any organization’s strategy, whether or not management and the board of directors are aware of them. Risk is inherent in any decision to expand into new markets, introduce new products, acquire a different line of business, build a new plant, or invest in uncharted research and development activities. A company’s strategic direction and its ability to execute on that direction are both fundamental to its risk-taking.
Is your company taking the right risks? In this issue of Board Perspectives: Risk Oversight, we discuss how companies can know which risks are good bets for them.