Why do companies collapse?
Risk can be defined in many ways. The most relevant and difficult definition is “The probability of an undesired outcome.” (Chicken 1996) The most obvious undesired outcome is going out of business. The history of business shows many examples of bad strategic decisions. Some brought about by hubris and some by the inability to accurately judge the impact of disruptive technology. Two more subtle problems are the subjects of three books: Producing Prosperity (Pisano and Shih, 2012), Restoring The Innovative Edge (Hage2011), and Inventing the Electronic Century (Chandler, 2001).