Lecture 7: Risk Management in Strategic Management

Business & Economics - 13 slides

This lecture focuses on the integration of risk management tools within strategic decision-making, emphasizing key practices like risk assessment techniques, business continuity planning, and maintaining strategic flexibility in uncertain environments. It highlights the importance of proactive risk

Topics Covered

• Introduction to Risk Management in Strategic Management
• Key Steps in Risk Management for Strategic Decisions
• Risk Assessment Techniques: Tools and Frameworks
• Business Continuity Planning: Frameworks and Implementation
• Scenario Analysis: Preparing for Uncertainty
• Strategic Flexibility: Adapting to Change
• Quantitative Tools for Risk Management: Expected Monetary Value (EMV)
• Risk Appetite Frameworks: Defining Tolerance Levels
• Decision-making Under Uncertainty: Decision Trees
• Introduction to Risk Monitoring and Response Strategies
• Enterprise Risk Management (ERM): An Integrated Approach
• Real Options Analysis: Dynamic Decision-Making in Uncertain Environments
• Key Takeaways and Closing Thoughts

References

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• Damodaran, A. (2008) Strategic Risk Management: Approaches and Models. NYU Stern School of Business.
• Hubbard, D.W. (2009) The Failure of Risk Management: Why It’s Broken and How to Fix It. Hoboken: Wiley.
• Hillson, D. & Hulett, D. (2004) Project Risk Management: Principles and Practices. Boca Raton: CRC Press.
• Kerzner, H. (2017) Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 12th edn. Hoboken: Wiley.
• ISO (2019) ISO 22301:2019 Security and resilience - Business continuity management systems - Requirements.
• Smith, N. and Sipika, C. (1993) 'Back from the Brink: Post-Crisis Management', Long Range Planning, 26(1), pp. 103-112.
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• PMI (2017) A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 6th edn. Newtown Square, PA: Project Management Institute.
• Hubbard, D.W. (2009) The Failure of Risk Management: Why It's Broken and How to Fix It. Hoboken, NJ: Wiley.
• COSO (2017) Enterprise Risk Management – Integrating with Strategy and Performance. AICPA.
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• PMI (2017) A Guide to the Project Management Body of Knowledge (PMBOK Guide). 6th edn.
• COSO (2017) Enterprise Risk Management: Aligning Risk with Strategy and Performance.
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• Amran, M. and Kulatilaka, N. (1999) Real Options: Managing Strategic Investments in an Uncertain World. Boston: HBS Press.