Do you attempt to look out for risk situations before they become severe and result in a crisis? If you are only looking at opportunities to grow your business and not weighing potential areas of risk you are probably a candidate for a crisis sooner or later. This is the area of risk management.
Good management takes calculated risks in growing, but always weighs the potential risk vs. reward of things that they do or have done in the past that may one day catch up with them. Lets take the current example of General Motors which is recalling some 6 million vehicles for cars built from 2004-2010. This is estimated to cost them some $2-5 billion. To put that into perspective their average earning over the last 4 years (since the bailout and returning to profitability) averaged $5