In light of the one in one hundred year Pandemic, and the ongoing unprecedented events such as supply chain issues, increasing energy costs, rising interest rates and staffing shortages, it is time for meaningful discussion about those High Consequence Low Probability incidents that could impact the achievement of your business’s strategic objectives.
Whilst successful in managing the crisis, many businesses, if they conduct a post-mortem, would identify things they did right and areas they could improve. Better practice businesses that are currently preparing their next year’s strategic plan, are now conducting these post event assessments.
Furthermore, they are determining whether there are other High Consequence Low Probability risks that may have an impact on their business continuity and having deep conversations on how they would respond.
Building resilience requires a risk culture, a desire to contemplate the impact of extraordinary events on the businesses ability to survive and to take action such a conducting scenario planning and documenting a response strategy.
Attached is a great article from McKinsey on their insights on the role of the board in preparing for extraordinary risk. With one in hundred year events happening more frequently, if you have any questions or would like to better understand how to identify risks to your strategy, please do not hesitate to contact Jeff on jeffwebb@jnw.au
the-role-of-the-board-in-preparing-for-extraordinary-risk_final McKinsey 3-22
