Each is an essential link in the outbound value chain that runs from the origination of goods and services to the ultimate consumers. Among the most important of these assets are leadership, culture and values, strategy, systems and processes, intellectual property and brands. Our view is that a company's ability to create and realize value is based on those assets that are unique to its organization. As investors have always known, there is no return without risk. That principle is also true for businesses.
Risk encompasses the uncertainty of future reward in terms of both the upside and the downside.
But risk management often focuses too exclusively on financial risk rather than total enterprise risk. Today, businesses must consider risk arising from new business models and market conditions. Much like investors, the ability to constantly adjust the types of assets a company has and uses to create value in its portfolio will determine its economic outcome. As a result, information is the core of a company's ability to succeed, but more so today than ever before. It's our view that new measurement practices will ultimately create the next information revolution.