There are several models on designing a company's strategy. Some strategy design models focus on the contents while others focus on the process. However, none of them consider risks as part of the strategy formulation while risks are important ingredients on decision making at strategic level as well as operational level. Furthermore, social and environment become two main, emerging issues that potentially raise risks and may put a company into trouble. For that reason this study attempts to propose a strategy design model that incorporates risks into the strategy formulation process. Social and environmental issues become integral part of the strategy formulation process. This proposed model attempts to combine both content and process approaches on strategy design. By putting risks at this stage, the company may anticipate major changing in the external and internal environments, mainly the shift in strategic group in which the company competes and as a result, the company may be able to build sustainable competitive advantages.