Financial Management & Risk

Showing 1-20 of 114

How to Develop Strategy for Execution

  • Research Highlight
  • Read Time: 10 min 

When developing strategy for execution, managers often want to start by setting their strategic priorities, but that’s a mistake. Management teams should start by identifying the corporate vision and critical vulnerabilities — both of which help clarify and shape priorities.

Four Logics of Corporate Strategy

  • Research Highlight
  • Read Time: 8 min 

Organizations often struggle with corporate strategy because executives lack clarity on how the parts of the corporation fit together. Without a shared understanding of the relationships between headquarters and business units, executives risk talking past one another when discussing strategy.

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Could the Big Technology Companies of Today Be the Financial Advisers of Tomorrow?

  • Frontiers

  • Opinion & Analysis
  • Read Time: 10 min 

Although traditional financial services companies now offer mass-market financial advice via “robo-advisers,” average U.S. customers seeking investment advice are still underserved — and platform-based digital powerhouses like Amazon are taking notice.

Six Reasons Why Companies Should Start Sharing Their Long-Term Thinking With Investors

Most CEOs have detailed long-term plans, which are often closely held secrets out of concern that competitive advantage may be undermined by detailed disclosure. Yet disclosing a long-term plan provides an opportunity to identify financially material sustainability issues and demonstrate how the company manages business-critical issues — information that’s valuable to investors.

Using Scenario Planning to Reshape Strategy

Rather than trying to predict the future, organizations need to strengthen their abilities to cope with uncertainty. A new approach to scenario planning can help companies reframe their long-term strategies by developing several plausible scenarios.

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The Board’s Role in Share Repurchases

  • Blog
  • Read Time: 4 min 

Many companies’ decisions about share repurchases are handled mainly by management rather than boards — with repercussions for capital allocation. Boards should carefully balance the capital needed for repurchases against its use in value creation via internal development or external acquisitions — and be skeptical of repurchase programs financed by debt rather than profits.

The Big Squeeze: How Compression Threatens Old Industries

  • Research Feature
  • Read Time: 16 min 

Accelerating compression of both revenues and profits may rapidly prove fatal to traditional businesses. Consider the accelerating decline of voice calls as a means of communicating via mobile telephone: From 2013 to 2015, average mobile voice revenue per user declined globally by 19%, and a further decline of 26% is expected through 2020. To stave off disaster, incumbents must transform and renew their core operations — while also growing into new businesses and industries.

Saving Money Through Structured Problem-Solving

  • Blog
  • Read Time: 6 min 

As busy as they are, leaders need to find ways to observe fundamental work processes in their organizations. When they do, they usually discover that there are gaps between theory and reality in how works get done. Michael Morales’ experience — in which identifying and addressing such gaps led to his company saving $50,000 in just 60 days — is a case in point.

Defining “Material” Climate Risks

Companies know climate change is relevant to their businesses, but they don’t address it in corporate reports because corporate leaders don’t believe it’s material to their business. The effects of climate change are beyond their planning horizon, they think, or they just aren’t clear whether or how climate change might be a material business risk. The Financial Stability Board (FSB) is hoping to change that.

To Improve Cybersecurity, Think Like a Hacker

To protect their organizations from cyberthreats, companies need to understand how hackers go about their work. The authors’ research suggests that hackers’ attacks typically involve four steps: identifying vulnerabilities; scanning and testing; gaining access; and maintaining access.

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What Executives Get Wrong About Cybersecurity

Cyberattacks are in the news. All kinds of organizations — ranging from Target Corp. and Bangladesh Bank to the Democratic National Committee in the United States — have fallen victim to them in recent years. MIT cybersecurity expert Stuart Madnick explains some of the biggest cybersecurity risks businesses face today — and what executives should do to decrease their companies’ vulnerabilities.

How Blockchain Will Change Organizations

Blockchain technology has the potential to transform how businesses are organized and managed. It allows companies to eliminate transaction costs and use outside resources as easily as internal resources. The implications for areas such as accounting, contract negotiation and enforcement, sales and marketing, and capital investment are myriad. Companies should start exploring how this technology could impact their industry and processes.

Showing 1-20 of 114