Risks aren’t limited to the crises that make major news headlines. For a company navigating an extremely volatile market, it is important to understand that risk is dynamic.īusinesses must reshape their understanding of operational risk. Increasing risks and global volatility have a significant and unexpected impact on customers, employees, assets, supply chains and, as a result, a company’s top and bottom lines. The most significant disasters are those that we are not prepared for-those that have an impact outside of our control. How does the new normal affect your business? What are the outliers? Many organizations think they have a mitigation or continuity plan for risks such as these, but in fact they only have a plan for the risks they expect-not the ones they don’t expect. In 2022 alone, we have experienced broad global political instability-cascading effects from Russia’s invasion of Ukraine, surging inflation (with an impending recession) and record-high temperatures.
Previous assumptions of stability just don’t hold true anymore.
Today, however, they are more prevalent, severe, and interconnected than ever before. Floods, power outages, and supply-chain disruptions happen all the time. Welcome to a world where dynamic risk is expected daily. The next week, you find out there's a power outage in a neighborhood in Hyderabad, India, that affects your developers-just as a major product is scheduled to launch. You scramble to figure out how to activate mitigation plans and notify employees. Over the weekend, a flood occurs unexpectedly just around the corner from your new office space.
You haven’t had time to notify your customers, and you're not sure how this impacts them-but now, they are calling their account representatives with questions. Halfway through the year, you find out from a news network that a large container ship is stuck at a major port. You’ve invested in proper office space and grown your customer base exponentially. You’ve doubled your team with outsourced talent to better maximize costs and reach a global market. Imagine you’re a scaling startup or an early-stage technology company serving a growing but highly vulnerable industry, such as supply chain.
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