Strategic Risk
Strategic Risk
Strategic risk refers to the potential for adverse outcomes resulting from decisions made by an organization's leadership regarding its long-term goals, objectives, and competitive position.
It involves analyzing and managing uncertainties associated with strategic planning, such as market changes, technological advancements, and shifts in consumer preferences.
Strategic risk is the risk that failed business decisions may pose to a company. Strategic risk is often a major factor in determining a company's worth, particularly observable if the company experiences a sharp decline in a short period of time. Due to this and its influence on compliance risk, it is a leading factor in modern risk management. - Strategic Risk, Wikipedia
Example: Blockbuster failed to adapt to changes in the video rental industry with the rise of digital streaming services like Netflix.
Example: Kodak, which was once a dominant player in the photography industry but failed to keep up with the shift to digital cameras and mobile devices with built-in cameras.
Risk Management Activities
Making The Case For Contribution
Organisational change can be very hard to achieve since organisations are naturally protective of themselves and the status quo. Setting up an OSPO and beginning an open source journey will seem like a risky and dangerous proposition for many parts of an organisation.