Embracing risk as a core competence: The case of CEMEX
In this paper we argue that risk management can be an important source of competitive advantage for firms. For this to happen, managers must overcome four deep-seated notions about the management of risk: the myopic conception that risk is a collection of unconnected threats to the survival of a firm, the belief that risk management is largely a financial activity, the idea that risk management is solely a top management team task, and a blind faith that CEOs can continuously anticipate the risks that firms must address on an ongoing basis. Challenging these four misconceptions reveals that risk management can be an activity that is value creating, not just value preserving. Indeed, rather than indiscriminately shedding all types of risks, companies can develop new sources of competitive advantage by embracing those risks that they are relatively better at managing than their rivals. We illustrate our arguments by analyzing the risk management practices at CEMEX, the Mexican cement manufacturer.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 15 (2009)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ahmed, Zafar U. & Mohamad, Osman & Tan, Brian & Johnson, James P., 2002. "International risk perceptions and mode of entry: a case study of Malaysian multinational firms," Journal of Business Research, Elsevier, vol. 55(10), pages 805-813, October.
- de Vries, Casper G & Hartmann, Philipp & Straetmans, Stefan, 2001.
"Asset Market Linkages in Crisis Periods,"
CEPR Discussion Papers
2916, C.E.P.R. Discussion Papers.
- Hartmann, Philipp & Straetmans, Stefan & de Vries, Casper, 2001. "Asset market linkages in crisis periods," Working Paper Series 0071, European Central Bank.
- P. Hartmann & S. Straetmans & C.G. de Vries, 2001. "Asset Market Linkages in Crisis Periods," Tinbergen Institute Discussion Papers 01-071/2, Tinbergen Institute.
- Hartmann, P. & Straetmans, S. & De Vries, C.G., 2001. "Asset Market Linkages in Crisis Periods," Papers 71, Quebec a Montreal - Recherche en gestion.
- Philipp Hartman & Stefan Straetmans & Casper De Vries, 2001. "Asset market linkages in crisis periods," Proceedings 727, Federal Reserve Bank of Chicago.
- Kent D Miller, 1992. "A Framework for Integrated Risk Management in International Business," Journal of International Business Studies, Palgrave Macmillan, vol. 23(2), pages 311-331, June.
- Marcello Pericoli & Massimo Sbracia, 2001.
"A Primer on Financial Contagion,"
Temi di discussione (Economic working papers)
407, Bank of Italy, Economic Research and International Relations Area.
- Briance Mascarenhas, 1982. "Coping With Uncertainty in International Business," Journal of International Business Studies, Palgrave Macmillan, vol. 13(2), pages 87-98, June.
- Brouthers, Keith D. & Brouthers, Lance Eliot & Werner, Steve, 2002. "Industrial sector, perceived environmental uncertainty and entry mode strategy," Journal of Business Research, Elsevier, vol. 55(6), pages 495-507, June.
- Steve Werner & Lance Eliot Brouthers & Keith D Brouthers, 1996. "International Risk and Perceived Environmental Uncertainty: The Dimensionality and Internal Consistency of Miller's Measure," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 571-587, September.
- Agmon, Tamir & Lessard, Donald R, 1977. "Investor Recognition of Corporate International Diversification," Journal of Finance, American Finance Association, vol. 32(4), pages 1049-55, September.
- Miller, K.D., 1993. "Industry and Country Effects on Manager's Perceptions of Environmental Uncertainties," Papers 93-105, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
- Demirbag, Mehmet & Tatoglu, Ekrem & Glaister, Keith W., 2007. "Factors influencing perceptions of performance: The case of western FDI in an emerging market," International Business Review, Elsevier, vol. 16(3), pages 310-336, June.
- Weiss, Howard M. & Ilgen, Daniel R., 1985. "Routinized behavior in organizations," Journal of Behavioral Economics, Elsevier, vol. 14(1), pages 57-67.
- Kent D Miller, 1993. "Industry and Country Effects on Managers′ Perceptions of Environmental Uncertainties," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 693-714, December.
- Brian H. Boyer & Tomomi Kumagai & Kathy Yuan, 2006. "How Do Crises Spread? Evidence from Accessible and Inaccessible Stock Indices," Journal of Finance, American Finance Association, vol. 61(2), pages 957-1003, 04.
When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:15:y:2009:i:3:p:296-305. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.