3
Horizons
Think beyond quarterly metrics—plan 1, 3, and 5-year views.
Strategic risk explained
Plan for market shifts and long-term bets.
Understand strategic risk, external forces that influence direction, and how leadership keeps goals resilient.
What is strategic risk?
Strategic risk is the possibility that long-term decisions fail because of market shifts, competition, regulation, or execution gaps.
%
Share
Market share and growth rates show whether strategy holds.
360°
Signals
Blend internal and external intelligence.
WHY IT MATTERS
Why strategic risk oversight protects long-term success
Aligns bets. Leadership compares opportunities with risk appetite before committing resources.
Catches disruption. Monitoring industries and competitors helps you pivot early.
Builds confidence. Investors and teams trust bold moves when risks are transparent.
OVERSIGHT
How to govern strategic risk
- Scenario planning Model upside, base, and downside cases for every major decision.
- Link to portfolio Balance investments across product lines, markets, and time horizons.
- Clarify accountability Boards and executives need clear roles for approvals and monitoring.
CADENCE
How to monitor strategic risk
- Scan signals Track macro trends, competitor moves, technology shifts, and regulatory agendas.
- Review quarterly Include strategic risk heatmaps in board packs with status updates.
- Stress test goals Re-run financial and operational assumptions when markets change.
- Adjust course Translate insights into updated OKRs, budgets, or exit criteria.
Strategic risk quick wins
Create a signal library
Catalogue data sources for market, customer, and regulatory trends.
Add risk to pitch decks
Require every investment memo to include strategic risk sections.
Hold retrospectives
Review past strategic moves to capture lessons learned.
STRATEGIC RISK GLOSSARY SNAPSHOT
Strategic risk glossary snapshot
Strategic risk. The possibility that long-term plans fail due to internal or external factors.
Scenario planning. Modelling multiple futures to stress test strategies.
Risk-adjusted return. Balancing upside with probability of loss.
FAQS
Strategic risk FAQs
What triggers strategic risk?
Market disruption, new competitors, technology shifts, policy change, or misaligned execution.
Who is responsible?
Boards and executives own strategic risk, supported by finance, strategy, and risk teams.
How is it measured?
Use KPIs like market share, Net Revenue Retention, or pipeline health plus scenario analysis.
How often should we reassess?
Review strategic risk each quarter and after major events (mergers, regulation, macro shocks).
Drova RunSafe keeps strategic risks, owners, and decisions visible.
Ready to connect strategy and risk?
GRC 101 HUB
Explore related topics
Risk management basics
Put strategic risk in context.
Financial risk overview
Align capital planning with strategy.
Integrated risk guide
Share insights across teams.
Risk appetite overview
Set limits for long-term bets.
Risk register template
Capture strategic risks alongside others.
Inherent risk explainer
Understand baseline exposure before controls.
