9 April 2020
Paul Harwood, member of the Risk Management Board shares his thoughts!
At the 2012 risk conference, Michael Thompson and Alice Underwood shared some work describing how different corporate cultures treat risk. There were four distinct approaches suggested: risk seeking, risk sharing, risk management and risk avoidance.
The research went on to model success in different economic conditions, aiming to show that a different risk approach produced the best results in different economic conditions (stable, volatile, trending upwards, trending downwards).
Can firms change how they handle risk, depending on the economic situation? Do we know quickly enough when the situation changes? What is your firm’s approach – and in the light of this theory, would you try and make a change?
View the slides from the talk and the summary paper
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