Assignment 9: Optimizing Risk Strategies for Strategic Advantage

What is risk threshold?

The range or amount of risk that is acceptable.

What is economic capital?

The amount of capital required by an organization to ensure solvency at a given probability level, such as 99 percent, based on the fair value of its assets minus the fair value of its liabilities.

What is porter’s five forces analysis?

A method of evaluating five forces that affect an organization’s competitive environment, including the threat of new entrants to the market, the threat of substitute products or services, the bargaining power of customers, the bargaining power of suppliers, and competition among existing firms.

What is Pestile analysis?

A framework used in strategic management for the purpose of assessing the external political, economic, sociological, technical, legal, and environmental arenas in which an organization operates.

What is SWOT analysis?

A method of evaluating the internal and external environments by assessing an organization's internal strengths and weaknesses and its external opportunities and threats.

What is mission statement?

A broad expression of an entity's goals.

What is vision statement?

The aspirational description of what an organization will accomplish in the long-term future.

What is strategic management?

The process of identifying, describing, and continually evaluating the business decisions and strategies of an organization to facilitate better performance and/or create a competitive advantage.

What is Key performance indicator (KPI)?

A measurement that defines how successfully an organization is progressing toward its long-term goals.

What is key risk indicator (KRI)?

A tool used by an organization to measure the uncertainty of meeting a strategic business objective.

What is strategy map?

A visual diagram showing the plans an organization develops to meet its strategic objectives.

What is scenario analysis?

An analysis that involves brainstorming the worst conceivable set of events that could befall a system, projecting the consequences of those events, and suggesting ways in which those events could be prevented.