Risk Consulting
Strategic Risk
Strategic risk refers to the risk that an organization takes on as a result of pursuing a particular strategy. It can arise from a variety of sources, such as changes in the market, technological disruptions, or shifts in regulatory
environments. Strategic risk can also come from the organization's internal operations, such as the execution of its strategy or the effectiveness of its leadership. Managing strategic risk is an important part of the strategic
planning process and involves identifying potential risks, assessing their likelihood and impact, and developing strategies to mitigate or manage those risks.
“Strategic risk is the risk of failure resulting from the implementation of a business strategy. -
John C. Hull. ”
Types of Strategic Risk
There are many types of strategic risk that organizations may face. Types of Strategic Risk include:
- Market risk: This type of risk arises from changes in the market, such as shifts in consumer demand or changes in competitive landscape.
- Operational risk: This risk arises from the internal operations of the organization, such as the effectiveness of its processes or the reliability of its systems.
- Financial risk: This risk is related to the organization's financial position and can arise from factors such as changes in interest rates or exchange rates.
- Regulatory risk: This risk arises from changes in laws and regulations that may impact the organization's operations.
- Reputational risk: This risk arises from damage to the organization's reputation, which can be caused by factors such as negative media coverage or customer dissatisfaction.
- Political risk: This risk arises from political instability or changes in government policies that may impact the organization.
- Technological risk: This risk arises from the adoption of new technologies or the obsolescence of existing technologies.
- Environmental risk: This risk arises from natural disasters or changes in the environment that may impact the organization's operations.
What we offer in Strategic Risk Consulting
We offer specialized services depending on the needs of the organization, such as helping organizations navigate regulatory environments or developing strategies for entering new markets.
In strategic risk consulting we offer a range of services to help organizations identify, assess, and manage strategic risks. Our services include:
- Risk assessment: Identifying potential risks and assessing their likelihood and impact on the organization.
- Risk management: Developing strategies to mitigate or manage identified risks, including insurance and contingency planning.
- Risk communication: Helping organizations communicate effectively about risk to stakeholders, including employees, customers, and shareholders.
- Risk training: Providing training to employees on how to identify and manage risks within their areas of responsibility.
- Risk modeling: Using advanced analytics and modeling techniques to understand and forecast risk exposures.
- Risk governance: Advising on the development of risk management policies and procedures and supporting the implementation of these policies within the organization.
- Risk culture: Assessing and improving the organization's risk culture, including the values, behaviors, and practices that drive risk-taking within the organization.
