A FRAMEWORK FOR MANAGING RISKY SITUATIONS

Abstract

This paper presents a framework consisting of seven logically linked considerations yielding nine strategies for managing risky situations. The framework provides a comprehensive method any entity can use to determine its strategy for managing a risky situation. The framework goes beyond the issue of calculating risk to asking how it might be managed The framework is applied in an example involving a human resources manager making a series of three related choices. It is also applied to the choices of strategies for a chief financial officer facing currency rate fluctuations and excessive taxes on profit.