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Risk Management in a VUCA Environment
Our risk approach starts off by understanding our business environments which falls under these concepts volatility, uncertainty, complexity and ambiguity (VUCA). VUCA can reveal the roadblocks that companies’ journey through to reach their objectives.
Increasingly, VUCA changes how organisations view the world, interact with each other, and respond to their environments.
In extreme cases, corporate continuity can be at stake. The manifestation of VUCA can be seen in many forms – a massive collapse in oil and commodity prices, the Zika pandemic, acts of terrorism, cyber security threats, natural disasters, technological glitches, and many more.
Inter alia, the Economist Intelligence Unit’s 2012 white paper, “Agent of Change”, based on a global survey of 567 top executives and 23 in-depth interviews with leading technology and business thinkers as well as senior executives, identified advancements in technology as a mega trend shaping the business world. Driven by an increase of low-cost computing power, greater storage and bandwidth capabilities, and the intensified harvesting of data (or big data trends), disruptive technologies will affect the fabrics of future workforce and business models. At the individual level, the Internet of Things is transforming living lifestyle to a smart platform of extending the concept of connecting everyone to connecting everything (example, smart offices and homes which have appliances controlled by smart phones).
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Risk Management in a VUCA Environment