Resource opportunities carry unique risks requiring careful management:
Timing Risk
Resource transitions timing is directionally predictable but specifically uncertain: - Build positions gradually - Maintain staying power - Use options for leverage - Focus on structural shifts - Prepare for extended cycles
Substitution Risk
Not all substitutions succeed. Technical, economic, or social barriers can prevent adoption: - Test thoroughly before scaling - Understand all barriers - Build complete solutions - Partner with users - Plan for resistance
Regulatory Risk
Resource transitions often trigger regulatory responses that change economics: - Monitor regulatory trends - Engage with policymakers - Build compliant solutions - Prepare for rule changes - Maintain flexibility
Sustainability Backlash
"Greenwashing" accusations can destroy value. Ensure genuine sustainability: - Measure actual impact - Maintain transparency - Get third-party verification - Engage stakeholders - Deliver real benefits