The New Risk Management

by Robert N. Charette

What causes an extremely successful and highly innovative company to lose 63% of its market value in one day? How is it that a consortium of some of the most recognized travel industry companies is unable to build an automated reservation system when it possesses tremendous depth of experience in its creation and operation? Why, as signs of the Web explosion are appearing everywhere, does the largest telecommunications supplier in the world cavalierly dismiss the Internet as a fad that isn't worth its time or effort? More important, why was each of these companies surprised by the eventual outcomes of its actions?

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The New Risk Management September 2000