What are systemic controls in the context of business?

Businesses can prepare for and respond to black swan events like pandemics or financial crises by building resilience into their operations. This includes having redundancies in place, even if they exceed what is typically acceptable in Six Sigma practices. The goal is not just about performance, but also about survival and recovery from unexpected systemic shocks. Businesses can also implement systemic controls on the flow of information, similar to how a casino operates, to beat randomness and win.

The statement 'resilience is the new growth strategy' implies that in a rapidly changing and unpredictable world, organizations need to be resilient to survive and recover from unexpected systemic shocks. This means that they need to have more redundancies than what is traditionally acceptable. The focus is not just on performance, but also on the ability to withstand and bounce back from major disruptions.

The concept of 'the house always wins' applies to business in the sense that a business, like a casino, can set up systemic controls to manage the flow of information and resources. This allows the business to maintain a level of control and predictability, even in the face of external events or 'rogue waves'. By building in redundancies and focusing on resilience, a business can ensure its survival and recovery from unexpected systemic shocks, much like a casino ensures its profitability regardless of individual wins or losses.