Strategic risk and uncertainty is the sensitivity of the company’s value to inappropriate strategic choices, ineffective strategy implementations, or uncertainties in the business climate. There are several frameworks that companies commonly use to plan out strategy, from simple SWOT analysis to the more nuanced and holistic balanced scorecard. The Council on Strategic Risks (CSR) is dedicated to anticipating, analyzing and addressing core systemic risks to security in the 21st century, with special examination of the ways in which these risks intersect and exacerbate one another. A nationwide mail survey was used to examine the sources of risk and the risk management strategies of New Zealand farmers by Martin(23). This advisory council is comprised of strategic and enterprise risk management practitioners as well as a published academic on the topic. Managing risk is a major element of the “chemistry of strategy.” You must understand strategic risks -- what they are, how to identify them, and how to assess and manage them from a strategic perspective. Risk Management . Although strategic planning is not listed as a resource category, it is critical to the overall success of any operation. Recognizing that strategic risk management is an evolving practice, RIMS formed a Strategic Risk Management Development Council to complement the strong work of its ERM Committee in this focused area. Managing strategic risk involves five steps which must be integrated within the strategic planning and execution process in order to be effective: Define business strategy and objectives. In follow up studies, In this context, there are a number of sources of risk for any business to consider, including risks from the marketplace, employee-related risks, and financing risks. This chapter provides an introduction to the concepts of strategic risk and strategic risk management (SRM). Competitor actions will affect risk levels in product markets, and technological developments may mean that production processes, or products, quickly become sources of risk in both crop and livestock production. 1.2.1 External risk factors mean external factors difficult for a financial institution to control or that a financial institution has no control over, … sources of finance used. Role of Strategic Advisor First, we look at some definitions of strategic risk by regulators and large financial institutions before discussing why such risks arise. •Strategic Advisor Source: Enterprise Risk Management Today’s Leading Research and Best Practices for Tomorrow’s Executives, John Fraser and Betty J. Simkins, 2010 Wiley and Sons Chapter 5 Becoming the Lamp Bearer: The Emerging Roles of Chief Risk Officer . 1.2 Source of Strategic Risk Strategic risk can arise from 2 main sources, namely, external risk factors and internal risk factors. Strategic risk levels link in with how the whole organisation is positioned in relation to its environment and are not affected solely by what the directors decide. The survey covered eight types of farm including sheep and beef, dairy, … Financial risk is embedded in all risks, since the impact of all risks is ultimately financial. current emphasis on “strategic risk management.” Strategic risk management is focused on the most consequential and significant risks to shareholder value—clearly an area deserving the time and attention of executive management and the board of directors. relationship between risk and return in most sectors, a surprise given the conventional wisdom that higher risk and higher returns go hand-in-hand, at least in the aggregate.3 This phenomenon, risk taking with more adverse returns, has since been titled the “Bowman paradox” and has been subjected to a series of tests. There are five main sources of risk in an agricultural operation: production risk, marketing risk, financial risk, legal risk, and human resource risks.