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Strategic risk management: an overview

Published on October 31, 2012 Reviewed on July 31, 2017   37 min
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My name is Torben Juul Andersen. I'm a professor of strategy and international management at the Copenhagen Business School. I was trained as an economist and worked in the international financial industry for more than a decade which naturally sharpened my attention to risk management issues. But after completing my Ph.D. In strategy and financial management, my academic career created a focus on strategic management and effective organisation responses to change. And from this, arose the term "strategic risk management". In this presentation, I introduce my perspective on this timely topic and try to frame the many thoughtful contributions to this series on risk management for corporate leaders.
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Now, why is it that we focus so much on risk and risk management issues as of late? Why do we care so much about risk? I think there are a number of reasons and let me just mention a few. We have recently witnessed a very unusual period of extremely volatile market conditions gone up with periods of economic recession and financial crisis, not seen since the crash on Wall Street in 1929 and the Great Depression of the 30s. The global economy is facing unprecedented conditions of cross-border imbalances and disequilibria of a significant scale. We cannot know how things will evolve and shape business conditions in the future. Yet, the business conditions and the ability to foresee and adapt to them are essential for future success and possibly the survival of the firm as an independent entity. Furthermore, whenever companies are affected adversely in tough times, restructurings and scandals of mismanagement are instantly and widely disseminated by the news media.