Proactive risk management addresses the risks and performance consequences of today's "define and execute to a plan" approach by shifting the basis of management planning to performance across a range of possible forecast outcomes.

Under proactive risk management, plans and strategies are structured, evaluated, and executed to optmize performance across the range of possible supply and demand outcomes, rather then only the "most likely" outcome. By proactively factoring in the key sources of uncertainty, managemeng gains visibility to and control over future performance across potential outcomes. The result is effective risk management.

Four resources are required to implement proactive risk management:

1) An enterprise date warehouse,
2) Planning and execution capabilities,
3) Optimal execution of plans and strategies, and
4) A management process for setting and measuring objectives and acountability.

Not only does proactive risk management enable effective and predictable management of performance, it also delivers substantial reductions in risk and improvements in performance.

Companies like Hewlett Packard, Ford, Intel, and Agilent Technologies are using proactive risk management. Shouldn't you?