What Is Strategic Risk -- and How Should You Counter It?

Your company has back-up data systems, earthquake insurance, and other forms of risk protection. But are you prepared to mitigate the many types of strategic risk? These include new technologies that can render your products obsolete, and sudden shifts in customer tastes that could redefine your industry. If you're not thinking about strategic risk, you may be putting your company in danger.

To escape this fate, apply powerful countermeasures for each form of strategic risk. For example, to protect against dangerous shifts in customer preferences, gather and analyze proprietary information to detect signs of change. Then conduct fast, cheap experiments to identify attractive offerings for different customer microsegments.

By washingtonpost.com Editor  |  October 1, 2008; 9:30 AM ET  | Category:  Management Tip of the Day
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