This paper addresses strategic risk management as an essential discipline for the sustainability of large corporations in an environment marked by increasing uncertainties and rapid transformations.

Leaders often view strategy and risk as separate entities—strategy is celebrated in boardrooms, while risk is delegated to compliance teams. This artificial separation undermines both disciplines.

Investing is a balancing act between risk and reward, where the aim is to take on types of risks that offer proportional returns. In this game, not all risks are created equal — some come with the ...