A Quote by Michael Porter
Risk is a function of how poorly a strategy will perform if the 'wrong' scenario occurs.
Related Quotes
A bad strategy will fail no matter how good your information is. And lame execution will stymie a good strategy. If you do enough things poorly, you'll go out of business.
If we speak poorly about that which we do well... people will assume we perform poorly!
The smart strategist allows strategy to be shaped by events. Good reactions can make great strategy. Strategy involves competition of goals, and the risk is the difference between those goals and the ability of the organization to achieve them. So part of the risk is created by the strategy.
Liberal radio performs poorly because its format already dominates other markets. And it will continue to perform poorly until the day comes when the rest of the media is at least balanced, if not fair.
Institutions - government, churches, industries, and the like - have properly no other function than to contribute to human freedom; and in so far as they fail, on the whole, to perform this function, they are wrong and need reconstruction.
A plan is only a scenario, and almost by definition, it is optimistic... As a result, scenario planning can lead to a serious underestimate of the risk of failure.
If you are not making any mistakes, you are being excessively risk-averse. Investing involves risk, and that means you will occasionally be wrong. And although it is okay to be wrong, it is not okay to stay wrong.
Stated in the simplest terms, the recognized solution to the problem of foodborne illness is a comprehensive prevention strategy that involves all participants in the food system, domestic and foreign, doing their part to minimize the likelihood of harmful contamination. And that is the strategy mandated by FSMA. It is not a strategy that assumes we can achieve a zero-risk food supply, but it is a strategy grounded in the conviction that we can better protect consumers and the economic vigor of the food system if everyone involved implements reasonably available measures to reduce risk.
I think what we need is better understanding of how to do risk analysis of a CDO, but that they still can perform a very valuable function because they can aggregate these risks and pass them around so that mortgages or other kinds of loans can be packaged and sold to investors all over the world, who in most times, would justify a small amount of each one.
The thing I enjoy about going fast is the risk-reward scenario you get. If you make good decisions, the benefits are amazing. If you get it wrong, you can lose so much.
I'm fascinated how often and with what whole-heartedness people will risk their lives to perform acts of courage, sacrifice, and compassion for total strangers.
Elon Musk, Stephen Hawking, and others have stated that they think AI is an existential risk. I disagree. I don't see a risk to humanity of a 'Terminator' scenario or anything of the sort.
Improving efficiency on the farm is not only a risk-reduction strategy, it's a profitability strategy.
No matter how careful you are, the one risk no investor can ever eliminate is the risk of being wrong. Only by insisting on what Graham called the "margin of safety" - never overpaying, no matter how exciting an investment seems to be - can you minimize your odds of error.
The single most damaging misconception about strategy is that it is a set of financial performance goals. The so-called "strategies" created by many managements are nothing more than three-to-five year financial performance forecasts. They are then labeled "strategy" and shipped off to the board of directors which goes through the motions of discussing how big the numbers are. Strategy is not your aspirations. Strategy is concerned with how you will arrange your actions and resources to punch through the challenges you face.
I believe that you have to understand the economics of a business before you have a strategy, and you have to understand your strategy before you have a structure. If you get these in the wrong order, you will probably fail.
Related Authors
Amos Bronson Alcott Quotes
American
Educator
Bill Nye Quotes
American
Educator
Cornel West Quotes
American
Educator
Dean Ornish Quotes
American
Educator
Horace Mann Quotes
American
Educator
Jeffrey R. Holland Quotes
American
Educator
Jon Kabat-Zinn Quotes
American
Educator
Lucy Maud Montgomery Quotes
Canadian
Educator
Maria Montessori Quotes
Italian
Educator
Michael Pollan Quotes
American
Educator
Paulo Freire Quotes
Brazilian
Educator
Peter Kreeft Quotes
American
Educator
Randy Pausch Quotes
American
Educator
Stephen Covey Quotes
American
Educator
Temple Grandin Quotes
American
Educator
Timothy Leary Quotes
American
Educator