Once you sort the risks, you can then check how likely they are to show up and how much harm they may cause.<\/span><\/p>\nStrategic Risks<\/b><\/h3>\n
Strategic risks<\/b> arise from key calls made by leads on what the <\/span>organisation<\/b> wants to reach. At its core, this is the risk of not hitting key work goals. These risks break down into two main types:<\/span><\/p>\n1. Business Risks<\/b><\/h4>\n
These come from choices made on what goods or help the <\/span>organisation<\/b> gives. They may be:<\/span><\/p>\n\n- Risks tied to the build and sale of goods or help<\/span><\/li>\n
- Cash risks that touch on how much you sell and what things cost<\/span><\/li>\n
- Tech risks that hit how you make or sell goods<\/span><\/li>\n<\/ul>\n
2. Non-Business Risks<\/b><\/h4>\n
These risks do not come from what the firm makes or sells. For one, they can deal with long-term ways to raise or use funds.<\/span><\/p>\nHow big the <\/span>strategic risks<\/b> are will show how the whole <\/span>organisation<\/b> fits with the world around it. It\u2019s not just what the leads pick. Things like what your rivals do or fast tech change may cause your work or goods to fall out of date.<\/span><\/p>\nACCA Paper 11: Strategic Business Leader (SBL)<\/b><\/h3>\n
The <\/span>Strategic Business Leader (SBL)<\/b> test aims to check a student's skill to show lead traits in a firm and help top teams as a guide or in a key role. It checks how well one can use work skills in one full case task. This test sits at the top stage of the <\/span>ACCA course<\/b> and builds key lead traits.<\/span><\/p>\nThe SBL test also builds on fair play and work skills from the <\/span>Ethics and Professional Skills Module<\/b>, which one must take on and pass before taking any top <\/span>ACCA course<\/b> tests.<\/span><\/p>\nThe SBL course has nine key parts. It starts with lead, fair play, and rules in firms. These form the basis for what comes next. Good leadership means you have a smart soundboard, you set the tone at the top, and you build a work and team culture that fits the goal of the firm.<\/span><\/p>\nTypes of Risk Management Strategic Leaders Should Know<\/b><\/h2>\n
Let\u2019s break down the <\/span><\/i>types of risk management<\/i><\/b> that often show up in the real world (and the SBL exam):<\/span><\/i><\/p>\n\n\n\nType of Risk<\/b><\/td>\n | Example in Practice<\/b><\/td>\n | Response Strategy<\/b><\/td>\n<\/tr>\n\nFinancial Risk<\/span><\/td>\n | Sudden rise in interest rates<\/span><\/td>\n | Hedging, diversification<\/span><\/td>\n<\/tr>\n\nOperational Risk<\/span><\/td>\n | Machinery breakdown, tech outage<\/span><\/td>\n | Backup plans, process audits<\/span><\/td>\n<\/tr>\n\nReputational Risk<\/span><\/td>\n | Negative social media publicity<\/span><\/td>\n | PR management, legal review<\/span><\/td>\n<\/tr>\n\nCompliance Risk<\/span><\/td>\n | Breach of regulatory requirements<\/span><\/td>\n | Internal audits, legal checks<\/span><\/td>\n<\/tr>\n\nStrategic Risk<\/span><\/td>\n | Wrong product launch decision<\/span><\/td>\n | Scenario planning<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n These risk categories often appear in <\/span>ACCA SBL exam papers<\/b>, especially in questions that assess evaluation and professional scepticism.<\/span><\/p>\nThe Risk Management Process: Step-by-Step<\/b><\/h3>\nYou\u2019ll do well in the <\/span>ACCA SBL exam<\/b> if you understand this simple process and apply it logically in your answers.<\/span><\/p>\n1. Identify the Risk<\/b><\/h4>\nScan the business environment. Look at both internal and external threats.<\/span><\/p>\n2. Assess the Impact and Likelihood<\/b><\/h4>\nRate risks based on how severe they could be and how likely they are to happen.<\/span><\/p>\n3. Develop Response Strategies<\/b><\/h4>\nDecide how you\u2019ll manage each risk\u2014avoid it, reduce it, share it (like through insurance), or accept it.<\/span><\/p>\n4. Monitor and Review<\/b><\/h4>\nBusiness conditions change. So should your response plan. Leaders need to regularly assess and adapt.<\/span><\/p>\nThis 4-step cycle is simple yet often missed in rushed <\/span>ACCA SBL mock exam<\/b> attempts.<\/span><\/p>\n | | | | | |