In good times, it’s easy to forget about risk. Optimism abounds when markets are growing and revenue and profits are up. The business is hiring new people, increasing the scale of operations, and searching out new and exciting opportunities for growth. Indeed, in such boom periods, the future looks so bright—to paraphrase the pop song—you have to wear sunglasses.
A version of this article appeared in the May–June 1999 issue of Harvard Business Review.