Jump to ContentJump to Main Navigation
Managing Risk and OpportunityThe Governance of Strategic Risk-Taking$
Users without a subscription are not able to see the full content.

Torben Juul Andersen, Maxine Garvey, and Oliviero Roggi

Print publication date: 2014

Print ISBN-13: 9780199687855

Published to Oxford Scholarship Online: June 2014

DOI: 10.1093/acprof:oso/9780199687855.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 02 April 2020

Value Creation Through Risk Management*

Value Creation Through Risk Management*

(p.101) 4 Value Creation Through Risk Management*
Managing Risk and Opportunity

Torben Juul Andersen

Maxine Garvey

Oliviero Roggi

Oxford University Press

This chapter discusses the emerging risk landscape and considers the value creating potential of uncertainty. Assuming a strategic decision-making perspective it is argued that risk management practices can help firms make better decisions for better risk-return outcomes. Effects of imperfect information and cognitive biases are considered, as are different ways to avoid them. It is shown how systematic risk analysis can help reduce information distortion and how these techniques can challenge forward looking strategic plans as well as ongoing project investments. The human limitations in making advance predictions under uncertainty are illustrated by predictable surprises. It is discussed how the value of effective risk management derive from dynamic processes that shield against downside losses and pursue prudent strategic risk-taking for upside potential. The role of innovation in developing upside gain is discussed as is the individual human involvement in these value creating activities. (143 words)

Keywords:   Cognitive biases, Emergent risks, Innovation, Project management, Strategic decision-making

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .