Strategic Risk Management Practice

A Strategic Risk Management Practice is a risk management practice that establishes systematic strategic control approaches (for managing organizational risks at the strategic level).

• AKA: Enterprise Risk Strategy, Corporate Risk Strategy, Business Risk Strategy.
• Context:
  • It can typically establish Strategic Risk Framework through risk strategy and governance structure.
  • It can typically align Strategic Objective with risk appetite and risk tolerance.
  • It can typically oversee Strategic Risk Assessment through threat evaluation and opportunity analysis.
  • It can typically maintain Strategic Control through monitoring systems and response mechanisms.
  • It can typically ensure Strategic Direction through risk-aware decision making.
  • ...
  • It can often implement Strategic Risk Culture through leadership commitment and organizational values.
  • It can often facilitate Strategic Change through risk-based planning and adaptation strategy.
  • It can often manage Strategic Resource through allocation strategy and optimization approach.
  • It can often coordinate Strategic Partnership through relationship risk management.
  • ...
  • It can range from being a Defensive Risk Strategy to being an Offensive Risk Strategy, depending on its strategic posture.
  • It can range from being a Conservative Risk Approach to being an Aggressive Risk Approach, depending on its risk appetite.
  • It can range from being a Regional Risk Strategy to being a Global Risk Strategy, depending on its geographic scope.
  • It can range from being a Single Business Strategy to being a Diversified Business Strategy, depending on its portfolio approach.
  • ...
  • It can implement Strategic Position through market analysis and competitive assessment.
  • It can establish Strategic Alliance through partner evaluation and collaboration risk management.
  • It can maintain Strategic Innovation through development risk management.
  • It can support Strategic Growth through expansion risk management.
  • It can enable Strategic Transformation through change risk management.
  • ...
• Examples:
  • Strategic Risk Types, such as:
    • Market Risk Strategys, such as:
      • Competitive Position Strategy for market defense.
      • Market Share Strategy for position protection.
      • Market Entry Strategy for expansion risk.
      • Market Exit Strategy for withdrawal risk.
    • Business Model Risk Strategys, such as:
      • Revenue Model Strategy for income protection.
      • Cost Structure Strategy for efficiency risk.
      • Value Proposition Strategy for offering risk.
      • Channel Strategy for distribution risk.
  • Strategic Implementations, such as:
    • Strategic Planning Practices, such as:
      • Scenario Analysis Practice for future preparation.
      • Strategic Option Assessment for choice evaluation.
      • Strategic Resource Allocation for investment risk.
      • Strategic Timeline Planning for execution risk.
    • Strategic Control Practices, such as:
      • Strategic Monitoring System for progress tracking.
      • Strategic Review Process for performance assessment.
      • Strategic Adjustment Process for course correction.
      • Strategic Learning System for knowledge management.
  • ...
• Counter-Examples:
  • Tactical Risk Managements, which focus on operational level rather than strategic level.
  • Project Risk Managements, which address temporary initiatives rather than ongoing strategy.
  • Functional Risk Managements, which handle departmental risks rather than enterprise risks.
  • Technical Risk Managements, which manage specific risks rather than strategic risks.
• See: Strategic Management, Risk Strategy, Corporate Strategy, Business Risk Management, Enterprise Risk Management, Strategic Planning, Strategic Control, Risk Governance, Strategic Decision Making, Strategic Risk Assessment.

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