Too many executives think risk management is strictly for technical specialists. In Risk Intelligence: Learning to Manage What We Don't Know, David Apgar challenges this misconception. Demonstrating that risk management is a core strategic discipline, Apgar provides a straightforward model and accessible tools for mitigating risk.
His framework puts risks into two categories: knowable and therefore learnable-and unknowable, so difficult to prepare for. Apgar explains how to identify your knowable risks and uncover what you don't know about them. The payoff? You raise the quality of your risk analysis-enhancing your "risk IQ".
Risk Intelligence helps you achieve these gains by applying four simple rules: Recognise which risks are learnable. Though all risks seem random and therefore impossibly uncertain, some are learnable: you could reduce their uncertainty by discovering more about them.
Apgar provides guidelines for taking on risky projects one at a time-analysing the risks underlying each project before moving to the next set of risks. He also explains how to avoid the "unprincipled diversification" that can overwhelm you with new risks to learn. Keep networks of partners to manage risk. Risk Intelligence shows how to build networks of business partners,suppliers, and customers who can collectively manage new ventures' risks by playing distinct roles. |