Board Directors should plan for risks in talent, supply chain, public health, and more. - Investment Capital Growth

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Board Directors should plan for risks in talent, supply chain, public health, and more.

Posted by Cliff Locks On July 6, 2022 at 10:23 am

Board Directors should plan for risks in talent, supply chain, public health, and more.

The notion that every company is a technology company became a popular idea over the past decade, as advancements in software, data analytics, and artificial intelligence profoundly transformed the business landscape. Companies of all stripes are now coming to recognize that the same holds true when it comes to thinking globally. The past three years have provided a master class in how quickly events that were once considered black swans can become a cascade of real-time risks that require a significant shift in the approach to both company strategy and risk management.

Every Company Is a Global Company

Overlapping shockwaves of a worldwide pandemic, historic supply chain shortages, and war in Europe have reinforced that companies of all sizes, across industries, are impacted by disruptions as far-flung as Wuhan or Kyiv. “The interconnectedness of the world’s economies is significant. This is true despite protective measures countries have taken, starting with the Great Financial Crisis and continuing through the US-China trade wars, COVID-19 lockdowns, and the Ukraine conflict,” says Krishna Kumar, VP, international, at the RAND Corporation. “Supply chain risks that had started becoming evident during COVID-19 have been amplified by the conflict in Ukraine. It illustrates how events not exactly in our backyard can cause serious disruptions to companies and societies.” He points out that while the disruption is most immediate for companies that fled Russia either because of sanctions or public pressure, “other companies that do not directly have business in Russia and Ukraine are also impacted due to shortages and increasing prices.”


(Continued on LinkedIn Article)


Contributor: Erin Essenmacher is a Board Director and Strategic Advisor, and edited by Cliff Locks, Investment Capital Growth, Managing Director, and Executive Coach

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