Abstract
Insufficiently rational strategic decision-making processes can result in illogical strategic choices. Risk management frameworks such as the COSO framework do not provide explicit insights into the risks associated with strategy formation. Based on the literature, we elaborate on two types of risks: (1) the use of limited or incorrect information, and (2) insufficiently careful consideration of strategic options. These risks are validated through an exploratory study conducted among executives. We conclude that the risks mentioned by them partially correspond to the risks identified in the literature. However, the executives also perceive risks associated with insufficient pragmatism in strategy formation and do not explicitly recognize the risks of suboptimal group dynamics and dominant strategic discourse highlighted in the literature
Translated title of the contribution | Risk management in strategic decision-making: an exploratory study |
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Original language | Dutch |
Article number | 99396 |
Pages (from-to) | 175-182 |
Number of pages | 8 |
Journal | Maandblad voor Accountancy en Bedrijfseconomie |
Volume | 97 |
Issue number | 5/6 |
DOIs | |
Publication status | Published - 6-Jul-2023 |
Keywords
- Strategic desicion-making
- strategic risk management
- Strategic planning