Navigating Risks: Understanding Threats and Opportunities in Business
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Chapter 1: The Shift to Resilience
Since transitioning into the resilience sector, particularly in pandemic preparedness, I've revisited my collection of crisis management literature. However, I’ve found myself increasingly drawn to YouTube for insights, especially from Dr. David Hillson, who distills his extensive risk management experience into three pivotal questions:
- What are your goals?
- What potential events could positively or negatively influence your objectives?
- Which scenarios are most relevant and significant to you?
These inquiries help you formulate a strategy for managing your objectives alongside their associated risks, both positive and negative. It's often unrealistic to plan for every possible scenario, but having a strategy for key situations allows you to make informed decisions.
When faced with unforeseen circumstances, our instinctive "fight or flight" response can cloud our judgment.
The first video, "TP – Risky Business - 10 things I hate about TP!", explores common pitfalls in risk management, providing valuable lessons for professionals navigating this complex landscape.
Continuing with Dr. Hillson’s framework, the next three questions focus on action:
- What steps will you take when these scenarios occur?
- How effectively did you handle the events that transpired?
- Has your situation changed post-event?
These follow-up questions emphasize the importance of preparation. When a crisis arises, having a predetermined response plan can make a significant difference. Why is preemptive planning crucial? Our natural reaction to surprises can hinder rational thought.
Section 1.1: Understanding the Crisis Cycle
During unexpected events, our brain signals a state of emergency, flooding our body with adrenaline, akin to the confusion experienced during surprise parties. Familiarity with such scenarios allows us to navigate them more effectively, preparing us to respond with composure.
In risk management, the initial three questions are often termed the "before bang," while the latter three are referred to as the "after bang." Though the term may seem ominous, I prefer to think of it as analogous to the starting gun in a race. Yet, we must remember that crisis management is serious and can profoundly affect lives. This realization has marked the most impactful chapter of my professional journey.
Section 1.2: The Role of Technology in Resilience
A quintessential example of resilience technology is All-Wheel Drive (AWD) in vehicles. During heavy snowfall, having AWD means you can easily fetch essentials, unlike a neighbor without it. However, in business contexts where human lives aren't at stake, the focus shifts to understanding risk management in ways that promote rewards rather than merely mitigating crises.
Dr. Hillson's framework resonates with me because it emphasizes that risk management encompasses both positive and negative potentialities. As discussed in my previous article, "black swan" events can lead to favorable outcomes, such as unexpectedly winning a lottery or discovering a four-leaf clover.
So, how do businesses navigate this proactive space of risk management to harness rewards? Are there technologies that facilitate such outcomes? Numerous "resilience technologies" can enhance a company's capability to withstand challenges and outperform competitors during tough times.
Chapter 2: Embracing Resilience Technologies
The second video, "TELL ME ABOUT A TIME WHEN YOU TOOK A RISK! (2 Example Answers to this Tricky Interview Question!)", provides insights on articulating risk-taking experiences effectively, a crucial skill in today's business environment.
Resilience technologies can be as simple as wearing a facemask, which not only reduces the risk of contracting COVID-19 but also allows you to engage with the world beyond your home. These technologies embody the wisdom of computing pioneer Grace Hopper: "A ship in harbor is safe. But that’s not what ships are for."
I am only beginning to explore the foundational aspects of technologies that foster greater business resilience. For those interested, further insights can be found at resiliencetech.report as I continue this journey of discovery.