An organization’s potential for value-creation lies in its ability to embrace the intricate relationship and co-existence between risk and opportunity and activate this through (opens in new tab)-led transformation. Rethinking risk and value Risk-taking lies at the heart of most value-creating undertakings. The inherent relationship is captured by the Chinese symbol for risk, which is made up of two separate symbols for the words, “danger” and “opportunity.” Here, our combined notion of risk and value are in line with this interpretation. Our way of thinking about risk(s) isolates concepts that philosophers always knew were largely inseparable. Therefore, many risk management methodologies fail organizations. The frameworks we use to characterize risks – everything from ‘root cause analysis’, ‘annual top ten risk lists’, ‘high impact / low frequency’, and exposure analyses, are disconnected from value creation. Philosophy and etymology aside, organizations are learning, especially in financial services, to recognize the inextricable and balanced co-existence that risk and value creation share. Just think about a home loan for a moment – banks take on the risk of lending a sizeable amount of money over a period of time in exchange for the opportunity to receive substantial gains in the cost of that […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
