It is only slightly arguable, but many believe that the ability to manage risk is the crucible of a leader’s effectiveness. Failure to manage risk and to develop a risk-focused culture will sink the company and the CEO. Citing two recent, highly visible cases, these Ivey professors describe how the leaders of TD Bank Group and Maple Leaf Foods designed and implemented a strong risk management ethos and strategy in their companies
In an increasingly volatile world there is arguably no more important role for senior leaders than to prepare their organizations for risk – taking it, avoiding it and managing it. This was apparent before, during and after the 2008 financial crisis. Some organizations were ill prepared to manage the risks they had built up over the previous decade of dramatically expanded leverage. They either failed or were badly damaged by the financial markets meltdown and subsequent recession. Others had recognized the risks and had either avoided them or developed robust coping structures, systems, processes and cultures that allowed them to survive or even prosper when the immediate crisis was over.
Reprint from Ivey Business Journal
[© Reprinted and used by permission of the Ivey Business School]