Risk: A neglected component of strategy formulation

Eli Noy*, Shmuel Ellis

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review


The hypothesis that managers believe risk to be a major component of strategy formulation, with a corresponding effect on the strategic decision-making process, was subjected to empirical examination. A total of 93 top executives of Israel's largest industrial companies, representing various business sectors, responded to the research questionnaire. Although the data supported the major research hypothesis, they also showed that managers are not inclined to use risk-assessment models. In-depth interviews with 21 participants supported the findings and suggested possible explanations. Recommendations regarding the formation of risk strategy and the incorporation of risk assessment models to strategic decisions are suggested.

Original languageEnglish
Pages (from-to)691-707
Number of pages17
JournalJournal of Managerial Psychology
Issue number7-8
StatePublished - 2003


  • Decision making
  • Israel
  • Risk assessment
  • Risk management


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