In an evolving business environment characterised by globalisation and a challenging competitive paradigm, it is imperative for strategic management processes to focus on the financial perspectives of value and risk in intellectual capital to create sustainability in long‐term value. This paper presents the key issues pertaining to the strategic management of value and risk in intellectual capital and presents some hypotheses for a strategic management framework based on identified underlying value‐drivers, which in turn helps to focus and address the issue of risk management more adequately. The pervasive value‐drivers in three intellectual capital‐intensive sectors in Australia are identified from an analysis of case studies, then specified and extrapolated to provide implications for the strategic management of value and risk in the knowledge‐based firms. The strategic management implications of these value‐drivers are discussed and explained.
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