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Companies accept that they must take strategic risks to generate superior returns, but there have been no clearly defined best-practice approaches for managing strategic risk — until recently. Balanced Scorecard co-creator Robert Kaplan and fellow HBS professor Anette Mikes have created a risk-management framework that overcomes cognitive biases and embeds effective risk-mitigation practices throughout an organization. This Key Learning Summary from Harvard Business Review explores how, by mitigating risks, the new framework turns sound risk management into a source of competitive advantage.

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