To Manage Disruption, Understand Strategic Assumptions

When it comes to managing the risk of disruption to the business model, what executive management and the board of directors don’t know can harm the organization. A recent study determined that strategic risks showed the largest year-over-year increase for 2014, compared to macroeconomic and operational risks. Risks are strategic when they could potentially affect the validity of an organization’s plans to pursue growth opportunities.

In this issue of Board Perspectives: Risk Oversight, we discuss why management should identify and consider the key assumptions underlying the drivers that shape the organization’s strategy.