Many corporations leave value on the table because they are inconsistent when judging risks. One division may avoid seemingly risky opportunities that another division would find more attractive than its current investments. In other situations, opportunities are suppressed because they seem immensely risky to lower-level managers of the organization, but would be highly attractive if considered in the context of the corporate portfolio. The bottom line is that companies waste significant value potential because of confusion, inconsistency, and personal risk aversion.
To realize this potential, corporations need a direct and clear method for quantifying the organizational leadership's risk tolerance. A clear corporate risk policy informs and aligns the organization's decision makers. It also provides the basis for simple and powerful decision criteria that can be applied when comparing all types of risks.
In this Executive eBriefing, we'll show you techniques being deployed in leading companies that will help you define your corporate risk tolerance to unleash opportunities and judge risks consistently across your enterprise. Drawing on SDG's best practice as well as recent research on corporate risk tolerance, eBriefing leaders Eric Bickel, David Fishman, and Carl Spetzler will present a practical and theoretically sound approach to determining the right risk tolerance for your organization.
Speakers
Eric Bickel is a senior consultant specializing in risk management, decision and risk analysis, and portfolio management.
David Fishman is managing director of SDG's Financial Services practice and a leader of SDG's Value-Based Leadership program.
Carl Spetzler, SDG's chairman, leads strategy assignments to redirect and restructure major US corporations and to create revolutionary new products and strategic alliances.