How Enduring Firms Turn Risk into Strategic Readiness

Eric Viardot ()
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Eric Viardot: Skema Business School, Skema Executive Education

Chapter 12 in The Timeless Principles of Successful Business Strategy, 2026, pp 137-148 from Springer

Abstract: Abstract Enduring firms thrive not by avoiding risk but by transforming it into strategic readiness. Their longevity stems from a cultivated resilience that allows them to anticipate, absorb, and adapt to economic, technological, regulatory, or reputational crises. Risk management is not a peripheral function but a core strategic capability. These organizations understand risk as a decision-making condition under uncertainty, distinguishing between known probabilities and unknowable outcomes. They categorize risks as internal, external, emerging, and strategic, and embrace both downside and upside potential. Strategic risk management begins with defining risk appetite and aligning it with the firm’s identity and long-term goals. Resilient companies integrate risk into innovation, market expansion, M&A, and supply chain decisions, using tools like scenario planning and stress testing. They foster a risk-aware culture supported by agile governance, transparent communication, and cross-functional collaboration. Leadership sets the tone, encouraging openness, dissent, and ethical vigilance. Employees are empowered to identify and escalate risks, making risk awareness a shared responsibility. Ultimately, these firms treat uncertainty not as a threat but as a source of learning and growth by embedding risk resilience into their organizational DNA.

Keywords: Strategic risk management; Resilience; Risk-aware culture; Risk-aware leadership; Risk appetite; Uncertainty; Scenario planning; Leadership; Organizational structure; Cognitive diversity; Ethical risk (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/978-3-032-14617-5_12

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