The possibility of evolution from non-strategic risk to strategic risk: The role of strategic assets

Abstract

It is of great importance for the survival and development of an enterprise to effectively manage the risks based on the strategy. On the basis of combing the relevant literature, this paper redefines strategic risk and non-strategic risk, discusses the measurement of the possibility of non-strategic risk evolving into strategic risk by introducing strategic assets, and puts forward the opportune moment of management for strategic risk. The study suggests that strategic assets play an important role in the evolution of non-strategic risk into strategic risk. In order to improve the effectiveness of management, enterprises should start strategic risk management when the risk is still non-strategic rather than has evolved into strategic risk. Big data analysis method and artificial intelligence technology can help enterprises calculate the probability of non-strategic risk evolving into strategic risk and grasp the opportunity of strategic risk management.