Companies make money by taking risks, but lose money by failing to manage them effectively. Globalization is creating a whole new dimension of risk exposure that most organizations are not prepared to handle. During the last decade, globalization has raised the importance of the operational lifelines and infrastructure – global transportation networks and supply chains, IT and energy – that enable trade and business.
The potential for disruptions of these networks is rising in lock step with technological complexity, interdependency, terrorism, mutating viruses and even weather phenomena – disruptions that can cascade across networks, sectors and geographic borders. The successful competitors of the future will be agile, flexible and resilient – able to anticipate and manage risk and bounce back quickly from disruptions. For companies, communities and countries alike, resilience is becoming a competitive differentiator.