The only thing predictable in any business is unforeseen risk. Risks come in many types. Manufacturing companies stay exposed to supply chain risks, while financial institutions are vulnerable to regulatory changes and wide gyrations in markets. Besides, risks emanating from social and political upheavals, terror attacks, and natural disasters also keep managements on tenterhooks.
That’s why, one of the key roles of top management is to foresee risk and asses how it will impact their organization. The idea is to create a robust organization that can withstand external shocks.