Resilience in a world of interconnected risk

Across industries, leaders face a landscape that is more volatile and interconnected than ever. From cyber-physical convergence to climate extremes, geopolitical fragmentation, and technology-enabled threats, disruption is no longer occasional, it is the baseline.

 By Jennifer Caldarella, Managing Director, Global Large Account Strategy, WTW and Lucy Stanbrough, Head of Emerging Risks, Willis Research Network  

Amid this environment, the term “Black Swan” still circulates widely as leaders are surprised by what feel like overwhelming emerging risks and shifting global trends, and find themselves looking for answers and that next big shock event in the aftermath.

Yet in today’s interconnected world, many so-called emerging risks are neither unpredictable, unknowable or deserve the “Black Swan” label. They are risks that have been modelled, analyzed, and repeatedly warned about but too often remain underprioritized, siloed or disconnected from strategic planning. 

Emerging risks remain underprioritized on many risk registers. Why? Because emerging risks feel misaligned with priorities, are hard to own by a single team, feel diffuse and or haven’t happened yet. Despite detailed modelling and scenario tools, many organizations remain underprepared.

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