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Growth risks

Culture risks

Information management risks

Pressures for performance  ( over- 

 ambitious targets due to external 

demands)

Rewards  for  entrepreneurial   risk-  taking Transaction complexity and velocity 

(a particularly high risk for companies 

having to purchase or sell raw 

materials in bulk)

Rate of expansion (expansion difficult 

to control and recruit new employees)

Executive resistance to bad news (and 

lack of action)

Gaps in diagnostic performance 

measures (poor reporting capabilities)

Inexperience of key employees

Levels of internal competition (Is 

the culture cooperative or too 

competitive?)

Degree of decentralised  decision- 

 making (lack of central control and 

management of other risks)

Source: Adapted and reprinted by permission of Harvard Business Review from table on p. 87 from ‘How risky is your company?’ by 

Simon, R., in Harvard Business Review,  May–  June 1999. Copyright © 1999 by the Harvard Business School Publishing Corporation, all 

rights reserved.

Table 10.6

Organisational risk exposure factors (from Simon, 1999)

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Chapter 10  Change management

Exercises