71% of leaders feel well-prepared for strategic risks. Yet, 53% of their companies faced a major disruption in the past year. This isn’t preparedness; it’s a dangerous perception gap.
A BCG survey highlights a critical leadership blind spot: overconfidence. While 79% of executives prioritize strategic risk management , a full 80% view risk in a mainly negative or neutral light.
This mindset is a liability. True strategic leadership sees risk as a two-sided coin: “challenge” on one side, “opportunity” on the other. By focusing only on value protection, companies are failing to capitalize on the value creation potential of disruption. This reactive posture cedes competitive advantage and ignores the lessons from companies like The Body Shop or First Republic Bank, who failed to adapt to strategic shifts.
As leaders, we must shift our organizational mindset. Are you building resilience to simply mitigate the negative, or are you fostering the strategic foresight to capitalize on the positive?
#Leadership #StrategicRisk #RiskManagement #Resilience #BusinessStrategy
https://www.bcg.com/publications/2024/are-leaders-prepared-for-strategic-risk
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