While Strategy, Enterprise Risk Management (ERM) and Knowledge Management (KM) are distinctive terms that look quite different and are led by people with quite different backgrounds and training, there is a lot that is common between them. This article is an attempt to understand the links that exist between these three areas. The word `strategy' is quite familiar to academicians and practitioners. ERM is a term that has caught the imagination of people in recent years in an increasingly volatile and turbulent environment. Another buzzword today is KM, which is concerned with the need to create and share knowledge systematically in an organization to generate sustainable competitive advantage. The common thread running through the three approaches emphasizes on developing a thorough understanding of the environment and making the organization sufficiently responsive to threats and opportunities.

The success or failure of companies is often attributed to strategy. So often, we hear analysts and commentators quoting about a company in trouble: "Their strategy is not right." Enterprise Risk Management (ERM) is another term, the importance of which is realized by companies to identify and manage the risks they face using a holistic perspective. Whereas, Knowledge Management (KM) is concerned with the need to create and share knowledge systematically in an organization to generate sustainable competitive advantage. The spectacular rise of industries like computer software has given a boost to KM, while Strategy, ERM and KM are distinctive terms that look quite different and are led by people with quite different backgrounds and training, there is a lot that is common to them. This article is an attempt to understand the linkages that exist among the three areas.

Strategy can be defined in various ways. But fundamentally, it is all about setting a direction for the company, generating various options that can help the company to move in that direction, choosing one or more of these options and executing them efficiently. These options include capacity expansion, vertical integration, diversification, mergers, acquisitions, strategic alliances, divesture, spin off, turnaround, etc. Formulating strategy involves articulating a vision which does not exist or modifying the existing vision, setting long-term goals, SWOT analysis, generating a plan of action in line with the company's vision and long-term goals and evaluating them. Implementing strategy involves providing leadership, putting in place the appropriate structures, systems and processes and creating the `right' cultural environment. In more simple terms, strategy essentially addresses three basic questions:

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