Embracing risk as a core competence: The case of CEMEX

  title={Embracing risk as a core competence: The case of CEMEX},
  author={Donald Roy Lessard and Rafael Lucea},
  journal={Journal of International Management},
In this paper we argue that risk management can be an important source of competitive advantage for firms. For this to happen, managers must overcome four deep-seated notions about the management of risk: the myopic conception that risk is a collection of unconnected threats to the survival of a firm, the belief that risk management is largely a financial activity, the idea that risk management is solely a top management team task, and a blind faith that CEOs can continuously anticipate the… Expand

Figures and Tables from this paper

Risk and experience in foreign direct investment decision making: evidence from Chinese firms
International business activities and foreign direct investment in particular involve an element of risk and uncertainty, sometimes to a great extent. Despite this almost axiomatic statement, lessExpand
A Value-Centric Approach for Quantitative Risk Management
Risk management in the aerospace industry typically derives from a multi-step framework called Continuous Risk Management (CRM). In this process, identified risks are analyzed for their potentialExpand
Playing Global Monopoly in Cement: The Globalization of CEMEX
This research article is intended for use as a classroom case study with questions for discussion in International Business. This research analyzes CEMEX and their strategy for globalization. CEMEXExpand
Communities as a risk in mining: managing community legitimacy
Abstract Using three cases from mining multinational enterprises (MNEs) in Armenia, this article conceptualises community risk, providing an alternative framework to conventional risk managementExpand
The Primary Insurance Industry’s Role in Managing Climate Change Risks and Opportunities
Climate change presents a number of risks to economies and societies. These risks include physical, market, policy, and security risks. Some of these risks are more immediate than others, but allExpand
The Role of Corporate Risk Managers in Country Risk Management: A Survey of Jordanian Multinational Enterprises
The recent growth in diplomatic, civil and military conflicts presents evolving challenges for international business. These risks create new sources of country risk. Country risk, in this sense, isExpand
Uncertainty and Risk in Global Supply Chains
This chapter explores the uncertainties associated with today’s highly interdependent supply chains and the risks inherent their geographic dispersion and organizational fragmentation. It first laysExpand
The Role of Informal Institutional Risks on Firm Performance in Emerging Market Economies
This study aims at empirically examining the effects of informal institutional risks on the performance of more than 12000 firms in 39 emerging market economies. This study examines the influence ofExpand
Mexican Multinationals: Insights from CEMEX
Since Vernon's seminal work (Vernon 1966; Vernon 1971), international firm expansion has been predominantly portrayed as a phenomenon led by firms located in economically and technologicallyExpand
Boomerang Multinationals? Strategic Flexibilities or Rigidities? A Perspective on Developed versus Emerging Market Re-entrants
Research on EMNEs has come centre stage in international business (IB), with a surge of studies urging scholars to investigate the differences between the international decisions made by developedExpand


A supply chain view of the resilient enterprise
Many companies leave risk management and business continuity to security professionals, business continuity planners or insurance professionals. However, the authors argue, building a resilientExpand
Breaking the silos : Distributed knowledge and strategic responses to volatile exchange rates
A model of effective decision-making in a situation of distributed knowledge is developed, drawing on three perspectives: the sociocognitive perspective, which focuses on framing issues; the economicExpand
A Resource-Based Theory of the Firm: Knowledge Versus Opportunism
This paper develops a resource-based---knowledge-based---theory of the firm. Its thesis is that the organizational mode through which individuals cooperate affects the knowledge they apply toExpand
International risk perceptions and mode of entry: a case study of Malaysian multinational firms
Abstract Risk perceptions are believed to influence a firm's choice of entry mode into foreign markets. However, studies of the risks faced by international businesses have typically focused on aExpand
The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitiveExpand
We study the impact of ‘foreignness’ on survival in interbank currency trading worldwide over the period 1974–93. In particular, we develop hypotheses on the behavior of the liability of foreignnessExpand
A Framework for Integrated Risk Management in International Business
Treatments of risk in the international management literature largely focus on particular uncertainties to the exclusion of other interrelated uncertainties. This paper develops a framework forExpand
Making knowledge the basis of a dynamic theory of the firm
A multitype epistemology is begun which admits both the pre- and subconscious modes of human knowing and, reframing the concept of the cognizing individual, the collective knowledge of social groups, to help managers discover their place in the firm as a dynamic knowledge-based activity system. Expand
Industrial sector, perceived environmental uncertainty and entry mode strategy
Abstract Utilizing a multi-dimensional measure of perceived environmental uncertainty (PEU), we investigate both similarities and differences between services and manufacturing with respect to theExpand
Macroeconomic Uncertainty: International Risks and Opportunities for the Corporation
The International Environment of the Firm Corporate Risk - Who Cares? Managing Corporate Macroeconomic Risks - A Review of Current Approaches A Comprehensive Approach to Measuring and HedgingExpand