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To identify business risks at a board level you need to have strong awareness of your market and business environment. This slideshow introduces a new visual method, developed at the world famous Henley Business School in the UK, for analysing your business environment. We show how you can use the new method to identify key issues that could become a risk (or opportunity) to your business. We also show you how you can use this method to communicate your findings and recommendations to your executive team and board members.
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© Anastassios Marneris, 2012
How to identifybusiness risk:A new tool for board members
Anastassios Marneris
www.PESTLEWeb.com
© Anastassios Marneris, 2012
The Basis for yourEnterprise Risk Analysis
To perform your assessment of corporate risk you need: A strong awareness of your external
business environments.
A strong understanding of how external events can affect your business in the long term.
A clear, logical and compelling argument that you can present to your executive team and board members.
Use ‘PESTLEWeb’ to frame those issues and qualify your arguments.
© Anastassios Marneris, 2012
The view shared by experts…
Your business needs a ‘radar’ to scan your current environment for threats and opportunities
Day, G.S. and Schoemaker, P.J.H“Peripheral Vision: Detecting the weak signals
that make or break your company”
Your strategic success depends on a deep understanding of future scenarios
Van Der Heijden, (1996)
“Scenarios: The art of Strategic Conversation”
© Anastassios Marneris, 2012
PESTLE Issues
Global Business Environment
Specific Industry
Specific Business
Your Strategy
The PESTLEWeb Risk Analysis Method
1. Identify macro issues:
• What is changing?
• What are the causes/ consequences?
2. Evaluate their impact:
• What is important?
• What represents an opportunity?
• What represents a threat?
© Anastassios Marneris, 2012
Building your first
PESTLEWebTM
Model using www.PESTLEWeb.com
© Anastassios Marneris, 2012
Brainstorm initial issues ..
Use the editor at www.PESTLEWeb.com to brainstorm and organise your set of issues
© Anastassios Marneris, 2012
Issues...
Common symbols to represent issues in your business
environment
© Anastassios Marneris, 2012
Critically Review each Issue
What is changing?
What is important? More causes? More consequences? What represents a risk? What represents an opportunity? More information needed?
© Anastassios Marneris, 2012
Link your Issues...
Create links to show causes and consequences
© Anastassios Marneris, 2012
Form Your Arguments...
Predict and explain risk impactson your business
© Anastassios Marneris, 2012
Strengthen Your Analysis...
Strengthen the analysis with comments, references and arguments
© Anastassios Marneris, 2012
Enhance Your Analysis...
Add rich supporting information to each issue about risks, confidence and time-scales etc.
© Anastassios Marneris, 2012
Tabulate Your Findings
Use PESTLEWeb Editor to automatically create tables for documents
© Anastassios Marneris, 2012
Extract Your Work Into Reports
Use PESTLEWeb Editor to generate 'narrative' output that can be used in essays and
reports
© Anastassios Marneris, 2012
PESTLEWebTM
turns a list of unrelated facts into a:
– Convincing,– Relevant, and– Well-structured ..
…argument !
© Anastassios Marneris, 2012
Further Information..
Join us at www.PESTLEWeb.com
Use the PESTLEWeb editor to model your business environment
Read about our current research
Learn more advanced PESTLEWebTM
methods
© Anastassios Marneris, 2012
PESTLEWebTM
Picture your Business Environmentwww.PESTLEWeb.com
