How can a business turn a systemic threat into an outsized opportunity?

A business can turn a systemic threat into an outsized opportunity by first identifying the threat through horizon scanning. This involves identifying the top ten economic, technological, and social undercurrents that could impact the business. Once these undercurrents are identified, the business should then identify the risks and opportunities they could create. This can be done using the FOES Framework: Financial Risk, Operational Risk, External Risk, and Systemic Risk. The business should also train its junior staff to keep a lookout for the right issues and install organizational mechanisms to ensure warnings are heeded. Finally, the business should identify its response window and build an indicators dashboard.

Asked on the following book summary:

resource preview

Rogue Waves

How do you prepare your business for black swan events like pandemics or financial crises? Rogue Waves by Jonathan Brill explores how to prepare for a...

Start for free ⬇️

Download and customize hundreds of business templates for free

Go to dashboard to download stunning templates

Download

book summary Preview

resource preview
resource preview
View all chevron_right

Question was asked on:

Horizon scanning Identify the top ten economic, technological and social undercurrents that could create the next rogue wave and impact your business. These could include trends like changing demographics in the West, the rise of Asia and the impact of emerging technologies like 5G and IoT. For each of them, list the high impact changes in politics, markets and consumer behavior they could cause. Identify implications for your organization After you have listed the significant undercurrents relevant to your business, identify the risks and opportunities they could create. Risk can be modeled using the FOES Framework: Financial Risk, Operational Risk, External Risk and Systemic Risk. Since your junior staff is closest to ground reality, train them to keep a lookout for the right issues and install organizational mechanisms to ensure warnings are heeded. Identify response window and build an indicators dashboard Your response window is the period between the earliest time the changes be...

Questions and answers

info icon

Some other factors that could create the next rogue wave for businesses include political instability, changes in market trends, shifts in consumer behavior, financial risks, operational risks, external risks, and systemic risks. It's also important to consider the impact of emerging technologies and demographic changes. Training junior staff to identify these risks and building an indicators dashboard can also help businesses prepare for these potential rogue waves.

Changes in consumer behavior due to these undercurrents can be predicted by identifying the top ten economic, technological, and social undercurrents that could impact your business. For each of them, list the high impact changes in politics, markets, and consumer behavior they could cause. After you have listed the significant undercurrents relevant to your business, identify the risks and opportunities they could create. Your junior staff, being closest to ground reality, can be trained to keep a lookout for the right issues and organizational mechanisms can be installed to ensure warnings are heeded.

View all questions
stars icon Ask another question

RELATED

Scenario Planning Presentation preview

Scenario Planning

Calculate and document every action to gain a competitive advantage and react confidently to any type of situation. Use our Scenario Planning presentation to gain insights into schedules, budgets and forecasts, key growth factors and potential threats of upcoming events.

Risk Management (Part 2) Presentation preview

Risk Management (Part 2)

Did you know the Model 3 was one of Tesla’s biggest risks? Our Risk Management deck reviews the top Risk Management tools from the biggest consulting firms like McKinsey, Bain, and BCG who advise companies like Google, Amazon and Apple to avoid failure. You’ll also read some real-world examples of how these companies conduct their own risk management to succeed where their competitors fail.

Business Continuity Frameworks Presentation preview

Business Continuity Frameworks

Ensure that your business continues to thrive under unfavorable conditions with our Business Continuity deck. This presentation includes practical frameworks to help you perform better impact assessment, risk management, prevention and recovery strategies, and many more.
Macro Environment Analysis Presentation preview

Macro Environment Analysis

How to anticipate potential challenges and harness emerging opportunities in an ever-evolving business landscape? Use this Macro Environment Analysis deck to examine the frameworks that help organizations remain cognizant of external factors and use them to advantage.