The Timid Corporation: Why Business is Terrified of Taking Risk [Hardcover]

"…Hunt’s book is recommended – and his rallying cry against risk aversion is attractively original…" (IT Week, 21 March 2003)

"…a penetrating new book…" (Morningstar, 17 April 2003)

"…Hunt does a good job of taking apart many of the assumptions that inform current business practice…" (Spiked–risk, 29 May 2003)

"…remarkable…contains some thought–provoking moments…" (Supply Management, 3 July 2003)

"…this book aims to provide reassurance…" (Gulf Business, August 2003)

"…Hunt has made a provocative case that business today is quite timid…" (Wall Street Journal, 27 August 2003)

"…Hunt is on to something: Most companies are shrinking back from bold moves…" (www.conference–board.org, September 2003)

"…Hunt has hit on a highly provocative theme.." (European Business Forum, Autum 2003)

"…Hunt is absolutely right…" (Ethical Consumer Magazine, October 2003)

"…Hunt’s book is recommended – and his rallying cry against risk aversion is attractively original…" (IT Week, 21 March 2003)

"…a penetrating new book…" (Morningstar, 17 April 2003)

"…Hunt does a good job of taking apart many of the assumptions that inform current business practice…" (Spiked–risk, 29 May 2003)

"…remarkable…contains some thought–provoking moments…" (Supply Management, 3 July 2003)

"…this book aims to provide reassurance…" (Gulf Business, August 2003)

"…Hunt has made a provocative case that business today is quite timid…" (Wall Street Journal, 27 August 2003)

"…Hunt is on to something: Most companies are shrinking back from bold moves…" (www.conference–board.org, September 2003)

"…Hunt has hit on a highly provocative theme.." (European Business Forum, Autum 2003)

"…Hunt is absolutely right…" (Ethical Consumer Magazine, October 2003)

"..Hunt does a good job of taking apart many of the assumptions that inform current business practice.."

"..remarkable..contains some thought-provoking moments.."

"..Hunt has made a provocative case that business today is quite timid.."

"..Hunt is on to something: Most companies are shrinking back from bold moves..

"..Hunt has hit on a highly provocative theme.."

"..Hunt is absolutely right..."

This book looks at changing managerial styles in business and the predominance of risk aversion behavior over risk taking behavior. The author explores the various reasons (regulation and media scrutiny among them) that corporations are becoming more timid and analyzes the consequences this could have on the future of innovation and technological development in the business future.

′Irrational pessimism′ seems to characterize the business world in the new millennium. Corporate managers seem unsure of the future and afraid to take risk.

In this brilliant book, based on primary research, Benjamin Hunt argues that risk aversion is now institutionalised in business. The belief systems that used to drive business forward in the past have broken down, replaced by fear and anxiety about change and the future. Risk aversion has now become a more permanent mindset and mode of operation, existing even in periods of economic recovery.

The Timid Corporation shows that managers are on the defensive. Worried about appearing to be unethical, irresponsible, failing to manage risk, and inefficient with capital, managers have imposed a massive new raft of self–regulation on corporate behaviour – from ethical codes of conduct, to risk management procedures, corporate governance rules, sustainable development and corporate social responsibility regulation. At the same time, corporations have never been more defensive in their commercial behaviour. Today, corporations aim to get ′close to the customer′ at all times, are obsessed with brand loyalty, only innovate in a safe fashion, and avoid bold investment.

The Timid Corporation throws down a challenge to this new risk aversion. Industry needs to adopt a far more critical attitude to self–regulation, and raise its aspirations when it comes to technological innovation and economic growth.

′This book provides a much needed critical intervention in the governance and risk management mania that has characterised corporate regulation in the past ten years. Benjamin Hunt challenges us to reinterpret the mantras of brand management, customer focus, stakeholder dialogue, shareholder value and many more as products of an anxious society populated by defensive corporations, fearful of markets and led by empty political systems. The Timid Corporation is refreshingly provocative, and offers a timely reminder of the paradox of corporate regulation in the post–Enron world which can never restore trust. This book is essential reading for managers, politicians and academics concerned with the consequences of a culture of corporate risk aversion for genuine innovation."
Michael Power, P.D. Leake Professor of Accounting, and Co–Director, ESRC Centre for Analysis of Risk and Regulation, London School of Economics

Benjamin Hunt is an independent journalist and researcher. He has written for several national newspapers, including Wall Street Journal and Guardian, and numerous specialist journals. He was a contributor to both the Financial Times Mastering Risk series, where he presented his research into the rise of risk management, and the Financial Times Mastering Management series. He has conducted research for a range of clients in the professional services sector, in business, finance and technology fields.