CxOs Shy Away from Risk, as They Often Should, But Sometimes Risks Must be Taken

Many observers of organizational change would agree that if the CxO suite does not support a particular change, it will not happen. There almost always are good reasons for avoiding a risky change in company strategy or tactics, as successful organizations got there by making choices that resonated with customers. 

But industries and firms often also confront changing markets and demand; new competitors and threats to revenue and profit generation. Then the issue of risk becomes more important. 

Few CxOs willingly will support radical changes, even when a firm or industry is obviously flailing against new market realities. The risk fo a bad or suboptimal choice might always be about 70 percent. But there are times when those odds must be compared to near-100-percent chance of firm death if major changes are not made. 

Even then, most CxOs are just going to "take the exit package" (personally or on behalf of the firm), selling assets for the best price to be gotten, and finding some other game to play.