Have you noticed how there is a preoccupation with the risk of recession in the press and management discussions?Â It is as if an economic recession is the only impediment that may be in our path.
The real risk to business however sits not outside but within the organization.
And that risk is the failure to take an increasingly multi-faceted view of the potential problems that a Globally based business may face.
We all work (and that includes me as a “one man band”) in a Globally inter-connected world.Â Problems in one part of the world will eventually hit me.Â And that Global inter-connectedness or should I say inter-dependency which has mushroomed over the last decade, fuelled by the drive to outsource and offshore, has created a great source of vulnerability for all our businesses.
Rather than look at the next economic forecast, take a look at the 2008 Global Risk Network report published in January by the World Economic Forum.Â When you’ve downloaded it, move to look at the illustration on page 23.
Now ask yourself – Did your organization consider these risks when preparing its business plan?Â Have you considered a scenario that embraces these factors?
Merely taking a “monocular” view of risk and the outside world may prove to be the biggest failing for many businesses.