Our experience demonstrates that unidentified, unprepared for, and unmanaged negative disruptions and risks result in loss of money, time, and misallocation of resources. Equally, our experience shows that positive disruptions and risks offer new opportunities and competitive advantages, opening new markets for products or services.
Not all disruptions and risks are equal. Some are positive, opening opportunities and competitive advantages. Some are negative and costly. Some are significant. Some are negligible.
Executives accountable for running any business, regardless of its size, ownership or location, must identify and prevent or minimize the risks and costs of negative disruptive events, such as: competition; technology innovation; processes; regulations and their attendant legislation; politics; physical and operational environment; changing market conditions; and, customer/clients’ sentiments and preferences – locally, nationally, and globally.
Equally, executives are accountable for identifying the new opportunities that disruptions and risks can provide. Advances in technology, modern-technology platforms, artificial intelligence, communications, and the sharing economy are changing business models, creating positive or negative disruptions and risks.
The positivity or negativity of disruptions and risks lie in how the business identifies and interprets the effects of actual or probable disruptions and risks, the timeline of the disruption and the risk, and the strategies and tactics the business develops and implements to take advantage of the disruption and risk, if positive, or counter them, if negative.
Reputation and perceptual disruptions and risks are real and can be costly.