Is it time to rethink risk and reward?

  • Events of this year have created a high degree of uncertainty and a heightened sense of risk aversion amongst many boards and executives.
  • In the face of this changed landscape, boards and executives need to consider how they can shift the organisation to a better risk reward position.
  • This article outlines four possible approaches to making this shift.

'It is important that we guard against becoming too risk averse. I understand that in an uncertain world, it can be hard to take on risk and there can be a natural tendency to avoid new risks. But, if businesses are to seize the opportunities that are out there to grow and to increase Australia’s productive capital base, some degree of risk taking is necessary,' Dr Phillip Lowe, Governor, Reserve Bank of Australia.

Speaking at the recent CEDA annual dinner, Dr Lowe urged businesses to take advantage of current low interest conditions and seek to benefit from the many opportunities that will emerge over the coming years.

 

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