IUP Publications Online
 
Home About IUP Magazines Journals Books Archives
     
Recommend    |    Subscriber Services    |    Feedback    |     Subscribe Online
 
Effective Executive Magazine:
Transitioning Leadership and Risk Management
 
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 
 

One of the dilemmas faced by directors and other corporate leaders is the need to be entrepreneurial in ensuring the future success of a company which involves risk, while at the same time retaining prudent control. Transitioning leadership suggests a process of adjustment, adaptation, transformation or metamorphosis from one condition, situation or state to another, depending upon the extent of the internal or external change required to continue to operate and cope. The process also involves risk and its management. Boards need to ensure that risk aversion and contemporary approaches to compliance and risk management do not stifle creativity, innovation and entrepreneurship. In many contexts, approaches to risk management and the risk management community may need to change if risk management is to be viewed more positively as an enabler of enterprise, transition, change and transformation rather than as an inhibitor and overhead cost.

   
Transitioning leadership suggests a process of adjustment, adaptation, transformation or metamorphosis from one condition, situation or state to another, depending upon the extent of the internal or external change required to continue to operate and cope. The process involves risk and its management, and the degree and nature of this risk can depend upon the extent and type of changes required. Responsible leaders consider and balance the benefits, costs, timescales and risks involved in achieving their aspirations, goals and visions.

In many sectors, the contemporary business environment is characterized by discontinuity, innovation and uncertainty. The implications and consequences of disruptive technologies and new business models are not always clear. The leadership challenge is sometimes to move from a situation about which much is known into an unknown future at a time when few assumptions can be made with any confidence. Transition also challenges risk managers in relation to their role, perspective, approaches and contribution. The risk management community itself may need to go through a process of transition or transformation in order to remain relevant and add more value.
 
 
Effective Executive Journal,Transition as a Normal Condition ,Risk Management and the Board,Reviewing Risk Management, Balancing Risk and Performance .