Consideration of strategic risk and resilience in large enterprises: how to turn an uncertainty into an opportunity instead of a threat?

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Journal Title

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Volume Title

School of Business | Master's thesis

Authors

Date

2018

Department

Johtamisen laitos

Major/Subject

Mcode

Degree programme

Corporate Communication

Language

en

Pages

68 + 2

Series

Abstract

The objective for this research is to comprehend how Finnish corporations use strategic resilience for tackling strategic risk. The idea is to understand the comprehension of strategic resilience and its benefits combined with how organizations are using strategic resilience for survival in turbulent environment. The research objectives are to understand the comprehension of the benefits of strategic resilience (1) and how organizations are benefiting of this understanding in their ways of doing strategy (2). The last research objective is about comprehending how large Finnish organizations prepare to tackle strategic risk in their strategy (3). The research was conducted by interviewing three strategy directors of large Finnish corporations. The interviews were semi-structured and six in total, two per interviewee. The interviews were followed by a set of questions based on the literature review and the theoretical framework. The theoretical framework combines strategic risk and Enterprise Risk Management with resilience management and strategic resilience as two parts of creating competitive advantage in turbulent environment. As a research result, seven attributes for strategic risk and strategic resilience were formed. The attributes for strategic resilience are forecasting risk and promoting risk-taking and accepting failure. The attributes for strategic risk are having the mentality for change and innovativeness, avoiding nostalgia, using communication for building transparency and trust, the ability of making decisions fast and avoiding rigidity. These seven attributes were associated with turbulent environment and MNEs.

Description

Thesis advisor

Eräranta, Kirsi

Keywords

strategic risk, strategic resilience, turbulent environment, resilience

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Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-201811195826

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[gradu] Kauppakorkeakoulu / BIZ