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Root Causes of Decline by Risk Type

Share Price Decline Drivers

Market Capitalization in the Fortune 500


Strategic Operational Legal Financial

Decline On Core Product Demand 20%


Undiversified Risk 16%

86%
Failure To Identify Price Bubbles 13%
Poor Acquisition | Target | Merger Integration
Failure To Expand | Alternative Revenue Source
12%
12%
Strategic
Competitor Infringement On Core Market 5%
Margin Pressure 5%
Senior Management Turnover 3%
Poor Demand Forecasting 3%
Operational Setbacks
Commodity Price Decline
3%
3%
Operational 9%
Civil Lawsuits | Litigation Settlements 3% legal 3%
Accounting Irregularities And | Or Finance Fraud 2% financial 2%

0 5 10 15 20

CEB Baseline Strategic Operational Legal & Comp Financial

2009 (Fortune 1000) - 50% Decline 68% 14% 6% 12%

2015 (Fortune 500) - 40% Decline 86% 9% 3% 2%