3 Emerging Market Risks Companies Should Watch for in 2018

Harvard Business

They devote far more time to internal execution and competitive risks than to external risks that can change the playing field. This means that many emerging market risks get cut from the senior leadership agenda. At Frontier Strategy Group, we observed that in 2017, executives and boards paid the most attention to risks that dominated global headlines: Brexit, the Trump administration’s trade policy, cybersecurity, and, more recently, North Korea.

Venture Capitalists Are Looking for Failures

Women on Business

Let me first state that there are two types of failures, the first are those that do nothing and fail, the second are those that take a risk and end up failing. The fact is that businesses will not assume the risks necessary for innovation and development if they’re not ok with the idea of failing on some level. The problem with fearing failure is that you ultimately avoid risk, don’t bet on yourself or your business, and stunt your richest experiences.


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5 Ways to Eliminate Comment Spam and Boost Real Conversations

Strategy Driven

Blogging is one of the best marketing tools for businesses and influencers. Once they’re implemented, start your own email marketing campaign to ensure your audience stays up to date with your content and boost your conversations even further.

Seven Accelerants of Growth To Help You Succeed


Whitney Johnson wrote a book titled “ Disrupt Yourself ” in 2015 that effectively underlines the need to take right risks proactively and offers very useful stories and insights on how to disrupt yourself. The seven accelerants are (quoting from the newsletter): Take the right risks.

How CMOs and CROs Can Be Allies

Harvard Business Review

Chief Marketing Officers (CMOs) and Chief Risk Officers (CROs) may seem to have little in common. But in the aftermath of the financial crisis, risk managers have become increasingly involved in business strategy and decisions. That has coincided with marketing’s increased influence on strategy, driven by the unprecedented level of insights into customer behavior and trends that are now possible through analytics. Use risk data as an avenue for innovation.

8 Leading Areas for Change In Risk Management/Analysis In The Coming Years

Strategy Driven

Managers and people in higher positions, in general, are always looking for ways to improve bottom-line operations and minimize the risks. Risk management helps them stay on top of the market challenges and trends in the relevant industry. More Precise Risk Models.

Reinvigorate Your Career by Taking the Right Kind of Risk

Harvard Business

Curry’s game is an example of taking on competitive risk. ” Embracing market risk in our careers is a high-percentage move. We are increasingly aware of the importance of assuming market risk when it comes to starting or growing a business, but assuming market risk is also a critical accelerant of the personal disruption that fuels individual career growth. That is your market risk opportunity.

Decide, Change: The Two Essential Risks for Ultimate Success

Great Leadership By Dan

Guest post from Tom Panaggio : Risk is everywhere, and while common sense and consultants tell you to minimize risk, I suggest the opposite. I maintain that embracing what I call the "two essential risks" is necessary to achieve your ultimate success in business. Sure, you hope to avoid liability, investment, and market risks as you pursue your entrepreneurial dream, so you take steps to mitigate exposure. change risk success Tom Panaggio

Reason Why 2013 Stock Prices are in the Stratosphere

Coaching Tip

And, as you probably know, leverage can also move the stock market. In the July-August Elliott Wave Theorist , Robert Prechter discussed the role of leverage in sending the market to new price highs. The current ratio is also 3 times what it was at previous major tops in the stock market in the 20th century. -- The Elliott Wave Theorist , July-August 2013. Margin debt levels are not a precise market timing indicator, but one major financial firm advises caution.

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Deflation Will Take the Majority by Surprise

Coaching Tip

He then goes on to search other phrases pertaining to deflation and inflation, which you can learn more about via a risk-free read of the Theorist. This article quotes a market firm''s chief economist, "Weakness remains broad-based, with Germany stagnating, France contracting steeply and the rest of the region also clearly entrenched in an ongoing downturn of worrying severity.". Preview what''s inside and learn how to get your risk-free review. Stock Market What is

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Carey Pellock on HR Leadership for A Better World

HR Digest

In September, TransUnion announced its intent to acquire our marketing, risk and communications businesses, and our security business will become a new portfolio company under Golden Gate Capital and GIC.

How Companies Say They’re Using Big Data

Harvard Business

” Survey respondents included Presidents, Chief Information Officers, Chief Analytics Officers, Chief Marketing Officers, and Chief Data Officers representing 50 industry giants, including American Express, Capital One, Disney, Ford Motors, General Electric, JP Morgan, MetLife, Nielsen, Turner Broadcasting, United Parcel Service, and USAA. Companies that fail to adapt do so at their own competitive and market risk. Laura Schneider for HBR.

Benefits of Debriefing

Strategy Driven

market) risk obsolescence or irrelevance. Keep your company fighter-pilot agile in any turbulent or changing market. In a complex world where predictability is impossible and innovation and risk are necessary to survive and thrive, mistakes are not only acceptable, but welcome. It helps us to continually revise our assumptions about the market, economy, and world. The Forces of global change can render professional skill sets obsolete almost overnight.

Why Some of the Most Groundbreaking Technologies Are a Bad Fit for the Silicon Valley Funding Model

Harvard Business

The myth of Silicon Valley is that venture-funded entrepreneurship is a generalizable model that can be applied to every problem, when in actuality it is a model that was built to commercialize mature technologies for certain markets. At first, Opus 12 targeted the largest addressable market it could find: ethanol, an additive of gasoline. Alas, it soon became clear that, because of the large scale of the plants, the market was a nonstarter for a small, bootstrapping company.

Building a Minimum Viable Product? You're Probably Doing it Wrong

Harvard Business Review

For example, Drew Houston''s March 2008 Digg video for Dropbox generated 70K signups for a product that hadn''t been released yet — and went a long way in confirming product-market fit. While useful, invalidating MVPs are only possible when better products can be produced in small batches — making them difficult when product quality depends on scale of use or when low-quality alternatives abound in the market. Test market risk first.

Building a Minimum Viable Product? You’re Probably Doing it Wrong

Harvard Business Review

For example, Drew Houston’s March 2008 Digg video for Dropbox generated 70K signups for a product that hadn’t been released yet — and went a long way in confirming product-market fit. While useful, invalidating MVPs are only possible when better products can be produced in small batches — making them difficult when product quality depends on scale of use or when low-quality alternatives abound in the market. Test market risk first.

VC Funding Can Be Bad For Your Start Up

Harvard Business Review

Investors don’t like risk any better than you do. If you’re raising money before traction is in hand, so-called “market risk” is higher than if demand has already been proven. More than two generations ago, the venture capital community — VCs, business angels, incubators, and others — convinced the entrepreneurial world that writing business plans and raising venture capital constituted the twin centerpieces of entrepreneurial endeavor.

The Status Quo Is Risky, Too

Harvard Business Review

If your ideas are met with choruses of “that will never work,” “we can’t take that risk,” “let’s just stick with the plan,” your teammates are likely falling prey to a common decision making bias that former Rotman dean Roger Martin refers to as Underestimating the Risk of the Status Quo. Martin describes how executive teams carefully explore the risk of different courses of action, but neglect to make a similar assessment of the risk of staying the course.

When “Scratch Your Own Itch” Is Dangerous Advice for Entrepreneurs

Harvard Business Review

This approach to entrepreneurship increases your market knowledge: as a potential user, you know the problem, how you’re currently trying to solve it, and what dimensions of performance matter. And you can use this knowledge to avoid much of the market risk in building a new product. “Scratch your own itch,” is one of the most influential aphorisms in entrepreneurship.


Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

In estimating the cost of equity, nearly nine out of ten organizations use the capital asset pricing model (CAPM), which calculates the cost of equity using a risk-free rate, beta factor, and a market risk premium, each of which introduces significant variability. Book vs. Market Weighting Factors Used for Debt and Equity in Calculation of WACC. . Current market debt/equity ratio. Current book debt/current market equity ratio. Country risk rating model.

Still Many Ways to Skin a Capital Cost

Harvard Business Review

When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. The very lack of consensus in CAPM interpretation, he thought, was consistent with the workings of healthy and efficient markets. "It How can that be when the same information about the stock's underlying company and markets are available to both?

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Stop Trying to Predict Which New Products Will Succeed

Harvard Business Review

Is market performance predictable for a specific product or class of products? For products that cannot be predicted, we should focus on recognition — on trying to identify as quickly and cheaply as possible whether a product is succeeding when it’s actually introduced in the market, and create production and distribution processes that are flexible enough to adapt to our recognition of success or failure. Look at the variance of your new-market products.

Entrepreneurship: A Working Definition

Harvard Business Review

Because they are pursuing a novel opportunity while lacking access to required resources, entrepreneurs face considerable risk, which comes in four main types. Demand risk relates to prospective customers' willingness to adopt the solution envisioned by the entrepreneur. Technology risk is high when engineering or scientific breakthroughs are required to bring a solution to fruition. Financing risk relates to whether external capital will be available on reasonable terms.

Can Your C-Suite Handle Big Data?

Harvard Business Review

Adding a chief marketing officer (CMO) became crucial as new channels and media raised the complexity of brand building, while Chief strategy officers (CSOs) joined top teams to help grapple with complex and fast-changing global markets. Because the new data analytics horizons typically span a range of functions, including marketing, risk, and operations, the C-suite evolution may take a variety of paths.

If Crowdfunding is the New Day Trading, Look Out

Harvard Business Review

In an essay earlier this week on the evolution of money and finance, GigaOM founder and venture capitalist Om Malik argued that crowdfunding will be the new day trading, the latest financial innovation to “cut costs and [drive] wider participation in a previously closed and clubby market.” ” ( Subsequent research determined that fewer than 1% of day traders consistently beat the market.)

Business Can't Solve the World's Problems — But Capitalism Can

Harvard Business Review

Even social business will not address those issues for which markets cannot be developed. Philanthropy is the market for love. This nonprofit rulebook discriminates against charities in at least five different areas: compensation, marketing, risk taking, time horizons, and capital itself. Amazon was permitted to forgo investor returns for six years to build market dominance.