Whetting a Company's Appetite for Risk

Businesses need to stop being afraid to take risks and start fostering open discussion about them

In the wake of the biggest economic meltdown since the Great Depression, some management teams have developed an especially low tolerance for risk. Yet uncertainty should not mean paralysis. In fact, it's time for the strong to reawaken their appetites for risk. That is, if they have a workable process in place—one that centers on transparency and debate, is reflected in corporate culture, and emphasizes oversight, accountability, and responsibility.

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