The environment in which banks and other financial services industry firms operate was once very stable. It is now increasingly permeated with change. Enhanced performance demands make this change salient to high-level decision-makers. Many of the opportunities firms now face are path-dependent and this will continue to be so. For firms to make effective choices in such an environment, both competitive strategy and the strategy-making process must come to terms with opportunities which evolve over time. Old decision-making systems and attitudes are unhelpful in this and may even be impediments to good outcomes. Risk inevitably features in getting these decisions right. All strategic decisions induce and impose constraints on the types of risk banks traditionally monitor and manage. This needs to be explicitly considered and is generally not. Strategic decisions also impose a new type of risk, detailed here, which also needs to be analyzed, monitored, and controlled. All these activities require changes, discussed in detail, both in decision-making protocols and in the organizational structures and routines supporting decision-making.