3.1 Drivers: Risk, Reward and/or Resilience
Analyze complex situations through four key lenses: Risk (R), Risk vs. Reward (RvR), Risk & Resilience (R&R), Risk, Reward & Resilience (RRR). Launch on platform.
What is it?
The Risk, Reward, and/or Resilience (RRR) Framework by Anthea Roberts provides a structured approach for analyzing complex situations by systematically evaluating threats (Risk), opportunities (Reward), and system robustness (Resilience). The framework can be adapted across four distinct analytical configurations to suit varying strategic needs and decision-making contexts.
Why is it useful?
Applying the RRR Framework helps you to:
Clearly identify and assess risks and vulnerabilities. Balance opportunities against risks effectively. Enhance system resilience by understanding absorptive, adaptive, and transformative capacities. Make well-informed strategic decisions, particularly in volatile, uncertain, complex, and ambiguous (VUCA) environments.
How does it work?
The RRR Framework operates under four flexible configurations:
Risk Analysis (R)
A focused approach that identifies and evaluates threats, vulnerabilities, and exposure levels.
Crisis response, regulatory compliance, immediate threat assessments, and rapid defensive analyses.
Threat identification: Hazards, disruptions, and threats to stability. Exposure mapping: Identification of operational, financial, and technological vulnerabilities.
Vulnerability evaluation: Organizational weaknesses and gaps in capabilities.
Regulatory compliance audits. Data breach threat evaluation. Risk matrices for identification and evaluation
Risk vs Reward Analysis (RvR)
Comparative analysis weighing risks against potential rewards to support decision-making involving clear trade-offs.
Investment decisions, resource allocation, innovation prioritization, and market entry assessments.
Opportunity sizing: Evaluating potential benefits and market opportunities.
Capability assessment: Understanding strengths, gaps, and capacity to realize rewards.
Access evaluation: Assessing market and regulatory barriers and entry points.
Deciding on entering a new market or launching a new product line. Evaluating mergers and acquisitions. Prioritizing technology investments or innovation projects.
Risk & Resilience Analysis (R&R)
Integrated evaluation of threats alongside an assessment of a system’s ability to absorb, adapt, and transform in response to shocks or stresses.
Sustainability planning, infrastructure assessment, crisis preparedness, and climate adaptation strategies.
Absorptive capacity: Ability to endure disruptions without significant damage.
Adaptive capacity: Flexibility and agility to adjust strategies and resources.
Transformative capacity: Long-term strategic shifts enabling resilience and sustainability.
Infrastructure planning and sustainability strategies in response to climate change. Business continuity management for supply chains. Preparing public health systems for future pandemics.
Risk, Reward & Resilience (RRR)
Comprehensive, strategic analysis integrating risk, opportunities, and resilience to inform complex, long-term decisions.
Strategic planning, innovation initiatives, major investment decisions, transformation projects, and navigating VUCA environments.
Integrated strategic analysis: Balancing threats, opportunities, and system robustness.
Portfolio optimization: Strategically managing a balance of risk-taking, reward pursuit, and resilience enhancement.
Long-term builds: Investing strategically to capitalize on opportunities while safeguarding against future threats.
Corporate strategic planning for market expansion and digital transformation initiatives. National economic resilience strategies. Comprehensive cybersecurity and digital capability planning.
Turning the RRR Framework into Action:
Clearly define your analytical needs: Choose the configuration most suitable to your situation.
Systematically evaluate drivers: Assess each dimension rigorously for thorough insights.
Integrate findings into strategy: Convert analysis into actionable strategic recommendations and operational adjustments.
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