Bus 377 week 10 discussion
When assessing risk, senior management should consider both short-term and long-term consequences. For example, if a new product has a high probability of failure but could potentially yield large returns if successful, it’s essential for senior management to understand the impact on all stakeholders involved—not just shareholders—and weigh those benefits against any downside risks. Similarly, when considering cost-cutting initiatives, senior management should evaluate whether such measures would reduce operational inefficiencies or put employees at risk.
Ultimately, senior management’s role is to find the optimal balance between taking risks and ensuring that projects remain profitable and sustainable over time. This involves closely monitoring progress throughout the project lifecycle and making sure resources are allocated appropriately based on evolving conditions so as not to leave any room for negative outcomes due to mismanagement or negligence. They must also ensure that their team is properly equipped with up-to-date skillsets and tools needed for success while making sure there is sufficient oversight over activities at every stage of execution. By doing so, they can ensure their organization strikes an optimal balance between profitability goals and stimulating growth in uncertain times.