Saturday, October 24, 2009
Harvard Business Review (October 2009): Spotlight on Risk
Harvard Business Review: Next week, I’ll be reviewing the highlights of the October issue of the Harvard Business Review. Worth the read if you’re interested in managing risks in an uncertain economy. Suggest subscribing, especially for senior, strategic teams. Here’s the FIRST of the coming week:
Spotlight on Risk:
This month in the Harvard Business Review (October 2009), the editor focused on risk in business as we climb out of a recession. Editor Adi Ignatius tells of a conversation with famed investor George Soros. In that discussion, Soros was asked to comment on whether or not sophisticated mathematical models mitigated risk. He said, “I don’t believe that—I don’t understand any of it, and I don’t think anyone else does.”
Risk and incentives can be an unwise union. For example, tying CEO incentives to quarterly returns can produce short-term gains but unwanted long-term consequences. Read the next post as the articles on risk are briefly summarized.