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Risk: a neglected component of strategy formulation

Risk: a neglected component of strategy formulation The hypothesis that managers believe risk to be a major component of strategy formulation, with a corresponding effect on the strategic decision‐making process, was subjected to empirical examination. A total of 93 top executives of Israel's largest industrial companies, representing various business sectors, responded to the research questionnaire. Although the data supported the major research hypothesis, they also showed that managers are not inclined to use risk‐assessment models. In‐depth interviews with 21 participants supported the findings and suggested possible explanations. Recommendations regarding the formation of risk strategy and the incorporation of risk assessment models to strategic decisions are suggested. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Managerial Psychology Emerald Publishing

Risk: a neglected component of strategy formulation

Journal of Managerial Psychology , Volume 18 (7): 17 – Nov 1, 2003

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References (29)

Publisher
Emerald Publishing
Copyright
Copyright © 2003 MCB UP Ltd. All rights reserved.
ISSN
0268-3946
DOI
10.1108/02683940310502395
Publisher site
See Article on Publisher Site

Abstract

The hypothesis that managers believe risk to be a major component of strategy formulation, with a corresponding effect on the strategic decision‐making process, was subjected to empirical examination. A total of 93 top executives of Israel's largest industrial companies, representing various business sectors, responded to the research questionnaire. Although the data supported the major research hypothesis, they also showed that managers are not inclined to use risk‐assessment models. In‐depth interviews with 21 participants supported the findings and suggested possible explanations. Recommendations regarding the formation of risk strategy and the incorporation of risk assessment models to strategic decisions are suggested.

Journal

Journal of Managerial PsychologyEmerald Publishing

Published: Nov 1, 2003

Keywords: Risk management; Risk assessment; Decision making; Israel

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