Output list
Magazine article
Strategies for dealing with risk and uncertainty
Published 2015
International Banker, 14 - 17
Magazine article
Different strategies for dealing with risk and uncertainty
Published 2015
The European Financial Review, 44 - 48
Already in the 1920s Frank Knight distinguished risk (randomness with known probabilities) from uncertainty (unknown probabilities and possibility for unforeseen events). Only recently is the distinction starting to have an impact in mainstream academic thinking. In this article we draw out implications of risk and uncertainty for firm strategy – using four stylised strategies as an organising device (financial hedging, operational hedging and flexibility in addition to a benchmark strategy).