Beyond Fight or Flight: Alternative Risk Response Strategies

The purpose of enterprise risk management (ERM) is to identify and implement strategies or actions in order to address and evaluate uncertainties, threats and possible opportunities that may affect the existence and continuity of the organization and to respond to risks as a result of this assessment. A well-implemented ERM model adds competitive value by providing reasonable assurance to the organization. The stage of developing a response to risks is the stage which, as a result, puts the organization into action. The organization’s perspective and attitude towards risks are the main factors in determining risk response strategies. In this context, first of all, response strategies are determined separately for each risk. However, response strategies may differ for threats and opportunities. Once the response strategy has been decided, appropriate response actions are identified and combined into a risk response plan. This study searches whether the belief that risk strategies are limited to fight-or-flight motivation is accurate. To that end, the conceptual framework for responding to risks and alternative strategies other than fighting or avoiding risk are examined in detail. Thus, it has been revealed that the risks that are perceived only as a threat should also be considered in terms of the opportunities they may provide. It has been concluded that, contrary to the general belief, the strategies developed against risks are not only aimed at eliminating the threats caused by the risks, but they also differ in order to reveal the possible opportunities that these risks contain.