Risk implies uncertainty and we know that risks do not occur in isolation. Increasingly risks are occurring together or in short succession of each other, often with greater impact than the sum of the parts.
We live in a VUCA world! VUCA is an acronym for volatility, uncertainty, complexity and ambiguity characterising the current business environment and the world we live in.
Risk implies uncertainty and we know that risks do not occur in isolation. Increasingly risks are occurring together or in short succession of each other, often with greater impact than the sum of the parts. Why is this?
We know the world has changed significantly over the last few decades. There are more global trade links than ever before and the rapid pace of technological advancement has resulted in a world with highly inter-connected risks, unlike anything we have seen historically.
The current Covid-19 pandemic has unfortunately shown us the potential impact of the domino effect of inter-connected risks being triggered. We are simultaneously experiencing depressed market prices, high levels of market volatility, interest rate cuts, Rand weakness, supply chain interruptions, the need to rapidly adapt to a new way of work, cyber-attacks on the rise, rising unemployment, depressed economic conditions; with many lives and livelihoods being severely affected.
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