Managing Risk in a Volatile, Uncertain, Complex and Ambiguous Time-Webinar Recording

Video Transcription

Video Summary

In this webinar, Shawn Hutchinson from RFN Global discusses managing risk in volatile, uncertain, complex, and ambiguous (VUCA) times. He explains that VUCA refers to the challenges posed by external factors such as frequent and unpredictable changes (volatility), unknown future events (uncertainty), interconnected and difficult-to-see structures (complexity), and lack of data (ambiguity). Managing risk in a VUCA environment is crucial to increase the value and transferability of a company. Hutchinson advises three ways to increase value: increasing earnings, reducing risk, and being best in class. He highlights the importance of reducing risk, as it has the most impact on the valuation and transferability of a company. He also discusses the risk classifications of strategic, operational, financial, regulatory and legal, and reputational risks. Hutchinson suggests using VUCA thinking as a tool to manage risk and asks open-ended questions to address each category. He emphasizes the need for resiliency, incrementalism, and professional planning in a VUCA environment. Hutchinson concludes by providing a QR code to access the Spotlight Assessment, which identifies value drivers and areas for improvement in a business.

Keywords

VUCA

managing risk

reducing risk

increasing value

risk classifications

VUCA thinking

resiliency

professional planning

Spotlight Assessment