Cracking the Code of Executive Threat
Executive risk is one of the least understood aspects of organizational risk exposure, in large part because it is among the least "tangible" threats facing business organizations. The relative intangibility of executive risks stems from the lack of clear and objective loss bases that characterizes executive exposures, which means that those threats cannot be easily tied to objective indicators. In addition, the very scope of executive risk, in terms of what it is vs. what it is not, is ill-defined, which further compounds the difficulty of managing it.
Cracking of the Code of Executive Risk offers a comprehensive overview of executive risk faced by (primarily) public companies. The author delineates seven distinct sets of constituents (shareholders, employees, regulators, customers, suppliers, creditors and competitors) and four shaping forces (political, judicial, regulatory and competitive) which jointly determine the scope and the nature of executive risk - i.e., what it is vs. what it is not. Each distinct executive threat is causally examined with the goal of delineating "leading indicators" and other factors that can be used to assess the organization-specific exposure to executive risk and to take proactive risk mitigation steps. The root causes of individual manifestations of executive risk are explained both in conceptual terms (e.g., specific constituent groups and their underlying legal standing) as well as the more analytically meaningful observable precipitating factors (e.g., filings of a securities litigation or an EEOC claim), all with the goal of deepening the readers' understanding of that somewhat esoteric area of organizational risk.
Copyright 2015, Erudite Analytics. Paperback, 281 pages.