Enterprise risk management goes strategic as credit unions face risk head-on
Harvard Business School professor Michael E. Porter once said, “The essence of strategy is choosing what not to do.”
In a dynamic marketplace, Porter argued, organizations must make trade-offs to sustain their competitive advantage. For credit unions, that means understanding the impact business decisions have on their strategic objectives. And invariably that leads to a consideration of risk in all of its many aspects — from compliance to strategic.
Porter’s seminal article “What Is Strategy?” appeared in the Harvard Business Review in 1996. That was before Facebook and mobile devices, before the financial crisis and Great Recession, before the Consumer Financial Protection Bureau and before “black swan event” became part of our vocabulary.
From the March-April 2018 issue of The NAFCU Journal magazine.