“Simply identifying risk to the strategy ignores the risks of the strategy, and thus most strategic risks…. Strategic risks generally far outweigh operational risks, financial risks, and external risks in terms of their danger to enterprise value.”
Frederick Fungston and Stephen Wagner, Surviving and Thriving in Uncertainty 54 (2010).
Nonprofits often say they perform strategic planning, but how often do they consider how the strategy itself creates risks for the organization? When you do strategic planning, how do you consider the risks of the strategy? We’d like to hear feedback in the comments.
Risk Tips is a periodic posting on the Risk Alternatives blog. Here, we share some of our favorite thinkers’ favorite thoughts (and a few of our own). Please buy the books we quote: we want you to build your library of risk management and process improvement gems. To find out more about risk management, start here.