At this year’s strategic planning meeting, the CEO of a small automotive parts supplier was feeling optimistic. “We’re on a path to double revenues within five years,” said Jane. “Finally, we’ll have the resources to do things right.” She and the team had been struggling to keep their demanding customers satisfied on a shoestring budget. Jeff, the manufacturing VP, wasn’t as excited. "In my experience, growth creates nothing but problems. Why can't we just stay the size we are?"

John W. Myrna, Author, The Chemistry of Strategy: Strategic Planning for the Not-Yet-Fortune 500 

Managing risk is a major element of the “chemistry of strategy.” You must understand strategic risks -- what they are, how to identify them, and how to assess and manage them from a strategic perspective. Financial risk is embedded in all risks, since the impact of all risks is ultimately financial. There are five major sources of strategic risk. Two have the potential to wipe your company out overnight, and three, while unlikely to wipe out a company overnight, could smother it over the next three to five years.