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Editorial Rating

8

Qualities

  • Analytical
  • Applicable
  • Engaging

Recommendation

While many companies can adequately plan for foreseeable risks, they tend to be far less effective when it comes to preparing for unpredictable challenges such as cyberattacks, natural disasters or political upheavals. Yet these risks, which are bound to become more frequent in an increasingly volatile and complex world, can wreak havoc on businesses. getAbstract recommends this timely and engaging article from professionals at the Boston Consulting Group to executives looking to reinforce their corporate risk control strategies and capabilities.

Take-Aways

  • Companies that plan for unusual or hard-to-predict threats wield a “risk advantage” that puts them one step ahead of their competition.
  • Several common pitfalls thwart many firms from achieving a risk advantage, including considering risk management a compliance issue rather than a strategic concern, and basing risk management strictly on financial reporting cycles.
  • Some businesses follow a herd mentality and only prepare for the most predictable scenarios instead of those that could strike swiftly and unexpectedly.

About the Authors

Takashi Mitachi, Tad Roselund and Meldon Wolfgang are senior partners and managing directors at the Boston Consulting Group.


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