The Corporate Executive Board’s “Risk Integration Strategy Council (RISC)” has released the January 2011 “Emerging Risks Update,” (pdf) noting the following risks on the horizon for enterprise risk managers:
Leaks of sensitive corporate information like strategic planning documents or embarrassing memos (think Wikileaks, which is on its way to becoming a verb, like Google). Strategy: Bolster information security, especially as “new technologies and platforms like cloud computing, SaaS, and social networking gain prominence.”
Shortage of rare earth minerals, an essential component of clean energy technology, computers and electronics (e.g., mobile phones). China controls 97%. Strategy: Other countries (including the U.S.) with deposits of rare earth minerals can open or re-open their mines, “but it can take up to  years for a new mine to begin operations.” Meanwhile, “world leaders” must discourage China from unfairly exploiting its position. Continue reading “Four emerging risks for corporations”
It’ll be a short honeymoon. The next U.S. president will face high expectations (which may be impossible to fulfill), a recessionary economy and huge budget deficits. And that’s just domestically. Mike McConnell, the director of national intelligence, gave a speech this week that lays out the broader threats. As The Washington Post reported:
The next U.S. president will govern in an era of increasing international instability, including a heightened risk of terrorist attacks in the near future, long-term prospects of regional conflicts and diminished U.S. dominance across the globe, the nation’s top intelligence officer said Thursday.
Competition for energy, water and food will drive conflicts between nations to a degree not seen in decades, and climate change and global economic upheaval will amplify the effects, [McConnell said].
“After the new president-elect’s excitement subsides after winning the election, it is going to be dampened somewhat when he begins to focus on the realities of the myriad of changes and challenges,” he said.
Of course, besides the predictable conflicts and threats, “there is always surprise,” McConnell said. (Futurists call ’em wild cards.)
Continue reading “The president-elect will face big problems, threats”
An article in the latest The Futurist magazine (January-February 2008) summarizes an essay by Peter Schwartz & Doug Randall about wild cards in world affairs. (For futurists, a wild card is something that was thought to be a low-probability, but high-impact, event. Example: the collapse of the Soviet Union.) Some of the “strategic surprises” they see on the horizon that world leaders need to contemplate:
“The warning signs are there if one’s eyes are open to them,” Schwartz & Randall write. “The world’s business and government leaders will be immeasurably better off if they carefully consider how these scenarios could come to pass and act today to create maneuvering room for the radically different world that these game-changing events could create.”
The Futurist summarized “Ahead of the Curve: Anticipating Strategic Surprise,” by Peter Schwartz & Doug Randall, an essay in Blindside: How to Anticipate Forcing Events and Wild Cards in Global Politics, edited by Francis Fukuyama (Brookings Institution, 2007).
Continue reading “Anticipating wild cards in world affairs”