Today's blog is concerned with strategic risk management from a generic point of view.
No matter what business your organisation is engaged in, if you are serious about your business for survival in today's fast-paced global race for domination, more and more the value of strategic risk management becomes crucial for that success, especially as technology allows actions and changes to be executed faster than ever before.
In our modern world where uncertainty has increased, so too have the opportunities for success. It's because of this complexity in today's world that you need to equip your team with the knowledge and skills of strategic planning and the implementation process to manage all levels of the business. Risk is not an isolated area of activity in any organisation, it is linked through all areas of the business (human resource, finance, production, sales, etc), where some risks are linked together more strongly than others, which is a concept often referred to as the "risk interdependency field". Read http://www.businessinsurance.com/article/20110918/NEWS06/309189982 which is a classic example of corporate decisions that had a direct impact on risks elsewhere throughout the organisation.
If you are looking for research material to enhance your knowledge on 'risk interdependency field' I suggest you acquire this book which can be obtained here
Finally, there is one other concept that you should be aware of, it is the 'enterprise-wide view' which involves the entire organisation to gain an appreciation of the likely effects or consequences of alternative decisions.
It is important to note that 'Strategic Risk Management' is not a stand-alone discipline but is to be considered as being part of a larger collection of disciplines, especially Project Management and Financial Risk Management.
Well thats it for today. In my next blog I will discuss more about the concept of risk, until then....Peace out!