Define strategic risks.?

Question

Case study and examples of strategic risks

Answer 1

Strategic risks are risks that affect the long-term plan of a certain company. examples of these are low-price, high-volume strategies reduce the profit margins of a company, which competes with other low-price, high-volume companies. the differentiator can be quality, where you can change your strategy to high-value products.

other strategic risks can be portfolio diversification, new investment opportunities. basically, these are large-scale, company-changing issues for the long-run.

Answer 2

Strategic risk management

Project risks often seem to be the most urgent and attract the most concentrated attention. However, risks to the success or even the survival of an organisation may be more significant in the long term than any single project. Without the support of suitable methods it can be very difficult to understand where the most serious threats will arise and how to counter them.

Strategic risk management supports the strategic planning and development processes of an organisation. The underlying approaches used are essentially the same as for project risk management but the context and the terms in which the process is conducted reflect the timescale and breadth of strategic concerns. The analysis is readily extended to include opportunities as well as risks and bring the structured brainstorming discipline we use for risk identification into the early part of strategic planning.

The benefits of risk assessment in a strategic setting mirror the benefits for projects. They include clarity about the issues and their relative priority as well as realistic assessments of numerical outcomes, such as revenue and profit performance, where quantitative methods are exploited.


http://www.broadleaf.com.au/services/strat_rm.htm