What is Strategic Risk Management

Laborera is a fictional company. The company is a cloud-based software vendor that specializes in human capital management applications. Laborera is entangled in a class action discrimination suit for its artificial intelligence tools that allegedly prescreen and disqualify applicants in protected categories. Porter's five forces model and McKinsey's strategic horizons offer a framework for strategic review. Deal and Kennedy and the Denison organizational culture model are used to strengthen Laborera's organizational culture. The Bridges transition model and the McKinsey 7-S model enable transition and thoughtful organizational change management. Laborera improves ethical decision making, including decision processes involving a human-machine team, using the fairness/justice approach, and the common good approach. This case study demonstrates theoretical applications of risk management for software companies desiring to leverage artificial intelligence within innovative software applications.