1. What does risk-taking mean? How do senior executives try to reduce the risks they face? Risk-taking involves jeopardising a company's future survival and success Making decisions, regardless of time horizon - Imperfect/incomplete information - Short time horizon might foreclose long-term strategic options - Long time horizon requires using much more imperfect/incomplete information - Making decisions without fully understanding a company's current competitive position and the behaviour of competitors Reduce risks - Contingency plans based on milestones not being achieved - Imitating strategies of key competitors - Using consultants