Description

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This book presents a new approach to risk management that enables executives to think systematically and strategically about future risks and deal proactively with threats to their competitive advantages in an ever more volatile, uncertain, complex, and ambiguous world.

Organizations typically manage risks through traditional tools such as insurance and risk mitigation; some employ enterprise risk management, which looks at risk holistically throughout the organization. But these tools tend to focus organizational attention on past actions and compliance. Executives need to tackle risk head-on as an integral part of their strategic planning process, not by looking in the rearview mirror.

Strategic Risk Management (SRM) is a forward-looking approach that helps teams anticipate events or exposures that fundamentally threaten or enhance a firm's position. The authors, experts in both business strategy and risk management, define strategic risks and show how they differ from operational risks. They offer a road map that describes architectural elements of SRM (knowledge, principles, structures, and tools) to show how leaders can integrate them to effectively design and implement a future-facing SRM program. SRM gives organizations a competitive advantage over those stuck in outdated risk management practices. For the first time, it enables them to look squarely out the front windshield.

About the Author

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Paul C. Godfrey is the William and Roceil Low Professor of Business Strategy in the Marriott School of Management at Brigham Young University. Emanuel Lauria, DBA, is chief executive officer of KB Risk Solutions and has over thirty years of risk management and insurance industry experience. John Bugalla has over twenty years of experience as an enterprise and strategic risk management consultant--he has advised such companies as Exelon Corporation, Digital Realty Trust, Gildan, and PQ Corporation. Kristina Narvaez is the owner of ERM Strategies, an enterprise risk management and strategy research and consulting firm.

Praise For…

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“The C-suite needs this outstanding book. Well written, with numerous apt examples, it provides a reliable guide to closing the gap between strategy and execution that bedevils so many company leaders.”
—Thomas H. Stanton, author of Why Some Firms Thrive While Others Fail
 
“A fine book . . . the critical component of SRM success is 100 percent about the collaboration between the risk team and the rest of the organization.”
—Hans Læssøe, former Risk Officer, LEGO Corporation
 
“Strategic risk management—many aspire to it, yet few know how to actually implement it. This book changes that. Strategic Risk Management is full of insights, information, and tools, illustrated with business stories and analysis that effectively convey a clear road map to help executives answer the question, How can we see and respond to the future better?
—Carrie Frandsen, Systemwide Enterprise Risk Management Director, University of California
 
“This book is a must-read for anyone working in the area of strategic risk management (SRM). The authors present innovative new ideas and tools for SRM, together with many insightful examples of companies that have successfully and unsuccessfully faced strategic risks. These real-world examples bring the book to life, and it was a pleasure to read!
—Betty J. Simkins, Regents Professor, Williams Companies Chair, and Department Head of Finance, Spears School of Business, Oklahoma State University