The relationship between strategic management and risk management lies in the integration of their roles to achieve success. Strategic management involves defining long-term goals and devising plans to achieve them, ensuring a company moves in the right direction. In contrast, risk management is about identifying, evaluating, and addressing potential threats that could derail these plans.
For example, if strategic management is like plotting a course for a voyage, risk management is like monitoring the weather and preparing for storms, ensuring you have contingency plans to handle any unexpected challenges. While strategic management focuses on where you want to go and how to get there, risk management ensures you can navigate potential obstacles along the way.
