The change in the century has hit the business world like a tsunami. Old management styles, practices, assumptions, power houses, technology and governance are rapidly disappearing. I am listing a dozen out-of-fashion concepts of 20th century being replaced by the 21st century in-fashion concepts.
20th Century > 21st Century
1) Feudalism Gen Y
2) Europe Emerging markets
3) US as a super power Power base shifting to Asia
4) Autocracy Social media
5) Bureaucracy Crowd sourcing
6) Top down approach Collective intelligence
7) Command and control Emotionally intelligent leadership
8) Localisation Globalization
9) Division of labor Knowledge management
10) Personal computers Tablets
11) Hardcore profitability Corporate social responsibility
12) Theft & robbery White-collar-crime
Gen Y is a native of this new environment, whereas Boomers and Gen X need to immigrate to it. The same applies to companies, they have to compete globally to survive and adapt to the new concepts immediately. The ones that fail will be breathing their last in a few years.
This business environment also changes the landscape of risk management. The experienced risk managers actually have no experience in dealing with the uncertainties and risks of the new environment. On the other hand, the baggage of the past may become a hindrance to look at risks with new eyes and fresh perspective.
Hence, let us find out what percentage of risk managers are theoretically and practically geared to do risk management in this environment.
Any ideas on what are the new risks and how should risk managers address them?