The announcement from PG&E that the California utility will file for bankruptcy reminded me of a question posed a few years ago by the head of GM’s risk committee: “How do we manage strategic risks?”
Key takeaways —
- People can and do die from poor strategic risk management
- Due to blind spots in the risk vision of executives and directors, risks can emerge that unbalance corporate strategies and create existential events
- The critical success factors for strategic risk management include encouraging and rewarding risk awareness, creating goodwill with stakeholders, and building a strategic risk response plan
NASA’s ARIA team produced this map of damage to Paradise, California, from the Camp Fire, the deadliest wildfire in the state’s history. Image credit: NASA/JPL-Caltech
