A director proposes avoiding all innovation projects so the organization never takes strategic risk. What is the main flaw in that strategy?
Select an answer to reveal the explanation.
Short Explanation
If your only play is "never try anything new," you avoid risk by also avoiding the mission. Good risk management picks the right tool — avoid the reckless stuff, manage the rest — so the organization can still deliver.
Full Explanation
Avoidance is a valid treatment for specific intolerable activities, but applying avoidance to all innovation can prevent the organization from meeting strategic objectives. Corporate risk management balances treatments with mission: reduce, transfer, accept, or selectively avoid based on appetite and goals — not eliminate every uncertainty.