Strategic Risk Management looks at controlling the threats and opportunities in the wider environment.

One major difference that Strategic Risk Management has compared to the other risk management types is that it must consider a wide range of stakeholders such as customers, competitors and government because these all have the power to dramatically influence the operating industry and we need to prepare for the effects of potential changes in their activity.

Similarly, Strategic Risk Management can also depend how our organisation will affect the wider environment. For example, say we are one of two organisations considering merging together. Now this strategy is going to have a major effect on the wider environment and before committing to a decision of this scale, both will need to consider the opportunities and threats associated with the merge.

Strategic Risk doesn’t only apply to larger projects such as mergers and acquisitions, but smaller project management decisions such as launching a new product also should be considered. We will have to take into account risks in the wider environment and the many stakeholders that will influence the success/failure of the project.