Limitation of Strategic Risk Management
Sekar Vedaraman, India
We can avoid, control, mitigate, eliminate, or overcome the risks which we can foresee. But when an unforeseen "Black Swan event
causes disruption then the so called "strategic expenditures" - expenditure category may have no meaning and may need to be relooked at in light of the new information.
and Risk Intelligence may help to obtain a better understanding of how to manage what we do not know and cannot guess till the event occurs. If we could anticipate the unanticipatable then strategic risk management would really play a role in the survival of organizations in turbulent times.
Can we identify the low probability -very high impact risk items (which are generally ignored in a normal risk assessment exercise as highly unlikely) and focus on what-if scenarios to manage such risks?