A profound and insightful look at how company leaders prepare for and respond to shocks and crises that threaten their business.
Successful firms strategically manage and are more accurate in their assessment of large-scale risks. Doing so is increasingly challenging given the pace of change, whether financial, technological, regulatory, or environmental. Mastering Catastrophic Risk
provides real-world practical insights into how large companies are responding to this new reality and develops a framework for smarter thinking about events that can damage a business.
As leading authorities on risk management, strategy, and company leadership, Howard Kunreuther and Michael Useem take us on a groundbreaking tour of firms' decision making process. They demonstrate how improving readiness for and resilience against future shocks is now an integral part of company strategy. Using the "DISRUPT" model they have developed, they highlight the seven primary D
rivers of disruption: I
nterdependencies increase exposure; S
hort-term focus results in limited vision; R
egulations require change and constrain opportunities; U
rbanization increases the costs of disasters; P
robabilities of disasters have increased; and T
ransparency has enhanced public awareness of problems and impacts on firms' reputations. This updated paperback edition includes a new preface to address threats to business that have emerged or intensified in the past two years including existential threats like the coronavirus, self-inflicted calamities like the Wells Fargo customer account scandal, and
natural disasters like the West Coast wildfires and hurricanes on the Atlantic.
Some disruptions can be anticipated, while others arrive without warning. Their onset stresses decision makers, impairs company operations, and may even put the enterprise at risk. The bottom-line: business leaders and their governing boards face ever more challenging disruptions and must be ever more on guard. If your company is hit tomorrow, will it bounce back, or drown?Author:
Howard Kunreuther, Michael UseemPublisher:
Oxford University Press, USAPublished:
9.40h x 6.40w x 0.90dISBN:
9780190499402Review Citation(s): Publishers Weekly
03/12/2018 pg. 62
About the AuthorMichael Useem
Howard Kunreuther is the James G. Dinan Professor Emreitus of Decision Sciences and Public Policy and Co-Director of the Center for Risk Management and Decision Processes at The Wharton School, University of Pennsylvania.
is the William and Jaclyn Egan Professor of Management and Director of the Center for Leadership and Change Management at The Wharton School, University of Pennsylvania.