From risk management to strategic resilience

Senior executives at leading companies reveal their commitment to move from defensive risk management to a forward-looking stance based on strategic resilience.

In a volatile world, resilience is an increasingly critical prerequisite for corporate performance. The COVID-19 pandemic has caused a massive shock to public health, with dire human consequences. The crisis has dramatically demonstrated the sensitivity of economies to demand shocks as well as industry vulnerabilities to supply chain disruptions. Furthermore, the pandemic spread in an environment defined by accelerating climate change and the increasingly urgent demand to reduce greenhouse-gas emissions.

On top of public-health and environmental pressures, organizations are subject to many business challenges, societal uncertainties, and geopolitical tensions. The disruptive currents include accelerating digitization, cyberthreats, and inflation and price volatility. The dynamic pace of change makes disruptions hard to predict, even as they grow in severity and frequency. Companies in all industries thus need to plan for the unexpected and build up their response capabilities in advance.

By Alfonso Natale, Thomas Poppensieker, and Michael Thun. Lees verder op McKinsey site From risk management to strategic resilience

Source: Mc. Kinsey & Company

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