The Risk Driven Business Model by Karan Girotra

Four Questions That Will Define Your Company

This book argues that successful business models are deliberately designed around the allocation and management of risk: by answering four essential questions about which parties will bear various commercial risks and how those risks will be priced, timed, shared or shifted, firms can unlock new revenue streams, reduce costs and scale more predictably. Using case studies and practical tools, it shows how choices such as subscription and pay-per-use pricing, prepayment, pooling, platform intermediaries and creative contracting let companies manage demand variability, inventory and financing exposure, and align incentives across customers, suppliers and partners. The result is a systematic framework executives can use to rethink offerings and operations so that risk becomes a strategic asset rather than a hidden liability.

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