Managing Growth Risk: Lessons from the Current Crisis

Mathias Schmit () and Lin-Sya Chao

No 10-027, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: The current financial crisis has caused multi-billion dollar losses and broken a long period of strong and steady growth in the investment management industry. Despite the importance of strategic risks, current management practices tend to cope with them poorly, particularly when facing strategic risks linked to growth. Strategic risks are those exposures that materially affect the capacity of a company to survive. By reviewing literature and exploring how the world's top 50 banks recognize strategic risks in their annual reports, this paper highlights that these risks are not adequately perceived by the financial world and draws lessons from the current situation. Furthermore, this paper suggests a clear definition of strategic risk and shows that uncontrolled growth is a major potential source of strategic risk and increases the vulnerability of an organization. Finally, this paper discusses a number of key factors that need to be taken into account to manage growth risk effectively in order to secure sustainable value growth.

Pages: 20 p.
Date: 2010-04-07
New Economics Papers: this item is included in nep-ban
References: View complete reference list from CitEc
Citations:

Published by:

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/57619/1/wp10027.pdf wp10027 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sol:wpaper:2013/57619

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... ulb.ac.be:2013/57619

Access Statistics for this paper

More papers in Working Papers CEB from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().