Executives and investors fear that the world economy may be at risk of a worst-case systemic breakdown. But predictions of upcoming apocalypse have little value unless they are turned into a learning opportunity. Richard Levick and Leo Tilman outline how every firm must strive to make crisis management a part of executive decisions, strategic planning, and risk management.

A typical bond fund is always exposed to the same risks, at the mercy of market forces, and challenged to effectively react to the rapidly changing financial world. Go-Anywhere funds are a move in the right direction, a response to global challenges and volatile markets. Their wide adoption and success remain to be seen.

In its recent investment in Facebook, Goldman Sachs demonstrated noteworthy innovation and dynamism demanded by the new economic environment. When markets stabilized as the financial crisis subsided, like other financial firms, Goldman found that opportunities to make above-market returns vanished. Moreover, competitive pressures intensified, higher capital requirements and fee regulation threatened to diminish future earnings and return on equity.

Failure to understand and manage risk is a root cause of shareholder value destruction. Part and parcel of that, at companies that fail, or come to the brink of ruin, the right questions are not asked at all levels. Responding to the need for a new risk paradigm for corporate governance, we pose seven essential questions for board members and management teams, paving the way to an effective framework for leadership and governance.

Financial innovation can be an important contributor to economic growth, inclusion, and prosperity. This HBR article discusses how to spot potentially viable financial innovations and a setting that encourages companies and investors to use financial products responsibly.