Definition
The risk of loss arising from the failure of the group’s strategy or management actions over the planning horizon.
Controls and procedures
- A clear group strategy is in place.
- A board strategy and planning conference is held annually.
- A dedicated central resource is in place to develop corporate strategy.
- New products and processes are thoroughly tested prior to roll-out.
- There is comprehensive monitoring of competitor products, pricing and strategy.
- Robust change programme functions oversee business change.
- The group has comprehensive monthly management accounts, a monthly rolling forecast and a bi-annual budgeting process.