ABSTRACT
Risk Management provides fundamental guidance to the planning, development and effective execution of a business transformation. It is essential that business transformation managers seek to manage risks that relate to the process of transforming an organization towards a desired state and those risks that relate more to the possibility that this desired state becomes either obsolete or sub-optimal. Strategic risk can be divided into internal and external risks. Internal risks are inherent to a company's strategy formulation and execution and they thus relate to decisions about markets, customers, products, M&A activity and other top-line business decisions. External risks lie outside of normal expectations and thus appear rapidly and with little warning. Economic theory argues that risk or uncertainty must be present to achieve positive value and that the amount of value extracted is proportional to the level of risk that is present.
