Mastering Catastrophic Risk
Publication Date 15 Jun 2018
OverviewSuccessful firms strategically manage and are more accurate in their assessment large-scale risks. Doing so is increasingly challenging given the pace of change, whether financial, technological, regulatory or environmental. Mastering Catastrophic Risk provides real-world practical insights into how large companies are responding to this new reality and develops a framework for smarter thinking about events that can damage the business functions and operations of a firm.As leading authorities on risk management, decision processes, strategy and company leadership, Howard Kunreuther and Michael Useem take us on a groundbreaking tour that enhances our understanding of firms' decision making process. They demonstrate how improving readiness and resilience against future shocks is now an integral part of company strategy. They construct a compelling "DISRUPT" model that highlights the importance of six Drivers of disruption: Interdependencies increase exposure; Short-term focus results in limited vision; Regulations require change and may constrain opportunities; Urbanisation increases the costs of disasters; Probabilities of disasters have increased; and Transparency has enhanced public awareness of problems and impacts on firms' reputations and their value.Some disruptions can be anticipated, while others arrive without warning. Their onset stresses decision makers, impairs company operations, and may even put the enterprise at risk. The bottom-line: business leaders and their governing boards face ever-more-challenging disruptions and now must be ever more on guard to prepare for them. The book is chock-full of accounts that highlight adversities that companies faced. If your company is hit tomorrow, will it bounce back, or drown? Directors, executives and managers are provided with a checklist that they can use to reposition their firm to better anticipate and manage adverse events.