Summary of Strategic Risks from Case Studies

Patrick McConnell

Before tackling the topic of the tools and techniques needed to identify and manage strategic risks, this chapter summaries the key strategic risks identified in the case studies in this section of the book. The risks described are those that occur several times across different case studies and, in the author’s opinion, are the most important.¹¹The author recognises that there may be a form of confirmation bias in the selection and ranking of the major strategic risks described.

When considering this summary of risks, the reader should reflect upon whether they are indeed the most important for the strategy being considered/analysed by them, by first identifying the strategy (or combination of strategies) being pursued and then critically analysing the key risks identified in the relevant chapter(s).

TAXONOMY OF STRATEGIC RISKS

There is no agreed taxonomy of strategic risks but that is not surprising, as there is no definitive taxonomy of risks in financial regulation, other than the high-level classification used by Basel regulators in Basel II (Basel 2004), ie, credit, market and operational. The Basel Committee, however, does note that there are other “risk types” not