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Risk Over-Optimization

Meaning ● Risk Over-Optimization, in the context of SMB growth, automation, and implementation, represents the detrimental scenario where an organization expends excessive resources on risk mitigation beyond the point of diminishing returns. This misallocation diverts critical capital and focus from strategic initiatives that foster revenue generation and market expansion. Consequently, the pursuit of absolute risk aversion can stifle innovation and hinder the competitive agility necessary for SMBs to scale effectively.