Managing Risk and Resilience

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Managing Risk and Resilience

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Publication Date:
November 01, 2020

There are ordinary, predictable risks–and then there are black swan events, tsunami risks, and disasters. In “The Risks You Can’t Foresee,” three business school professors share advice on how to deal with threats that are unexpected and overwhelming. These novel risks, as the authors call them, cannot be addressed by following a standard playbook. This article describes how to detect the emergence of a novel risk (start by looking for anomalies and appointing “chief worry officers”) and then how to mobilize resources to mitigate its impact, deploying a critical incident team or empowering local personnel to tackle it. The package includes two companion features: In “Building Organizational Resilience,” Fernando F. Suarez and Juan S. Montes explain that in unstable times, the routines established to get work done often break down. When that happens, teams need to add two new approaches to their tool kits: heuristics and improvisation. The article uses the experiences of a Mount Everest expedition to illustrate how and when to adopt each approach. In “To Recognize Risks Earlier, Invest in Analytics,” Google’s chief decision scientist, Cassie Kozyrkov, argues that analytics is a critical capability for navigating uncertainty, because it helps you figure out where things are heading and what questions to ask.

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Managing Risk and Resilience

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