Risk Mitigation Strategies

Strategic direction involves developing long-term vision of the firm’s intent. A long-term vision typically looks at least five to ten years in future. The purpose and vision of an organization aligns the actions of people across the whole organization. For every corporate strategy adopted for higher performance, there are potential risk factors which entities must adequately consider. A real vision is very active and all the people in the organization understand and live it. The purpose of this paper therefore is to evaluate risk mitigation strategies appropriate to a company’s strategic direction and performance. The study is based on review of related literature on the topic. Data for the study were obtained mainly from secondary sources

Organizations with powerful and effective visions will likely have a mission statement. Daft (1999) stated “the mission is the organization’s core broad purpose and reason for existence. While strategic vision is concerned with where we are going and why it is good to go there, a company mission statement deals with the present business scope and purpose; who are we, what do we do, and why we are here (Thompson et al., 2005). It defines the company’s core values and reason for being, and it provides a basis for creating the vision”. An organization’s mission should communicate what the company is about. As such, it should be persistent and not change too often. Typically, a mission has two parts: the core values and core purpose. The core values are what guide the organization. The purpose “...captures people’s idealistic motivations for why the organization exists” (Daft, 1999). The mission statements of most companies say much more about the enterprise’s present business scope and purpose, “who we are, what we do, and why we are here.” A company’s mission defines the segment of customers the company seeks to satisfy, the market segment it seeks to serve, and the resources deployed to achieve the purpose (Thompson et al., 2005). If a company’s mission is to have any managerial value, or reveal anything useful about its business, it must direct attention to the particular market segment in which it operates; the buyer needs it seeks to satisfy, the customer groups, the market segment it is trying to serve and the types of resources it is deploying to please this group of customers. An effectively worded mission statement typically describes the company’s present business scope and purpose. Very few mission statements are forward looking in content or