strategic-risk

Vocabulary Word

Definition

'Strategic-risk' means the potential problems that can occur from an ineffective strategic plan. It's basically the reasons that prevent the success of what you've planned, like an unexpected competitor entering your market.

Examples in Different Contexts

In business planning, strategic risk refers to the potential for losses resulting from a company's business strategies not aligning with market conditions or failing to meet business objectives. A risk manager might say, 'Identifying and mitigating strategic risks is crucial for ensuring our long-term success and adaptability in changing markets.'

Practice Scenarios

Business

Scenario:

Our profits have been negatively impacted by the recent regulatory changes. We need to rethink our approach.

Response:

It's true that strategic risks from new regulations can impact our profits. We might need to modify our business model and objectives.

Leadership

Scenario:

Given the unpredictability of critical factors like market trends, competition, and customer behavior, we need a better way to manage our decisions.

Response:

Yes, managing strategic risk is essential for leadership. Let's prioritize risk management in our decision-making process.