Risk in Strategy
Get flash to fully experience Pearltrees
August 10, 2011 The recession caused people to focus on what they had to lose, rather than what they had to gain. But without some risk-taking, there is no innovation or growth for your company.
by Ndubuisi Ekekwe | 11:08 AM May 11, 2011 Consider two scenarios: Company A is a medical device maker that just released a new pacemaker. Its datasheet states that the device could fail once every 90 years. Its competitor, Company B, released its latest version a week before.
by William Byers | 8:17 AM May 18, 2011 Quantification — describing reality with numbers — is a trend that seems only to be accelerating. From digital technology to business and financial models, we interact with the world by means of quantification. While we all interact with the world through more-or-less inflexible models, mathematics contributes to this lack of flexibility because it is seemingly precise and objective. Even though mathematical models can be very complex, you can use them without understanding them very well.
by Ron Ashkenas | 1:54 PM May 3, 2011 An MBA student once asked me to give her a simple explanation of the "risk management function." After a few minutes of fumbling, I told her that risk management is the process of identifying, prioritizing, and mitigating the impact of unforeseen (and usually negative) events. In other words, it's a form of proactive contingency planning — either to completely avoid difficult situations, or prepare for them so that any undesirable consequences are lessened.