Strategic planning, when done well, is an effort to maximize the company’s potential by identifying, analyzing, and addressing risks. The key to strategic management is in its planning. A well thought out plan provides guidance on how best to respond to changing conditions and hence optimize profits. Unfortunately, without a sound strategy, businesses quickly find themselves caught in a vicious cycle of risk, where the damage done to profitability far exceeds the cost of the initial investment. This spiral of failure can often destroy the very businesses that are supposed to be helping people improve their lives.
“How can I prepare for the corporate world management exams?” Good question! In this brief article, I will discuss some ideas on how to address these questions. But first, I want to explain why strategic management is important.
First, global risk is a by product of a complex world. There are multiple sources of risk, and each one varies in its potential damage. Second, many companies fail to effectively manage their global exposure because they view it as collateral. They view their global risk as something that can be replaced or taken out of the equation entirely. Both of these views are problematic, and they lead to ineffective global risk management.
One of the first strategies for global, effective strategic management is to understand the different sources of risk that are faced by companies today. For example, there are the direct financial costs of products that are sold, the indirect costs of purchasing the raw materials and labor of production, the spillage of toxic materials, and even the changing political climates that affect international markets. These are just a few of the different types of costs that come into play when you talk about the strategic management of global risk.
You have probably heard the term strategic management before. If you research the internet, you will find articles and books devoted to the subject. Some of these books deal with applying theories of this strategic management in the context of a company’s internal processes. Others give advice on how to use these theories and other tools in business activities beyond the business itself. Still others talk about the topic in general and provide a variety of solutions to the question, “How do I prepare for my exam for me?”
Another way to approach the question, “How do I prepare for my strategic management of global risk?” is to make sure that you are always seeking out new information regarding the different sources of global risk today. This is because as the coordinator for a think tank, which happens to operate online, I am constantly looking for fresh insights into this ever-changing realm. The more you know, the better prepared you can be, both in managing yourself and in assisting your co-workers.
My favorite online think tank is known as the War Room. Here you can go to discover how others have applied various theories of strategic management as they tackle it head on in real-time. You can also find out what your particular organization needs to do if you want to properly take the online qualifying exam for strategic management of global risks.