Change Is the New Constant

“Change is the new constant”

Luis Gerardo Rubalcava Plascencia

September 16, 2012

“Change is the new constant”

In the past risk issues were static and did not change that much from one year to another, but nowadays we need a more fast reaction towards risk; therefore we need new approaches to address risk.

“Most organizations believe they are not working as well as they used to. They blame the rapid and unpredictable changes that are going on around them. But many of them have failed to grasp one fundamental truth: change is the new constant” (Lewis A. 2010)

Apparently not related issues or subjects such as: increasing competition, fuel dependency, natural disasters (Tsunami, Japan 2011), terrorism (9/11 US), all combined demand a new position towards risk. In addition, nowadays with a much higher access to information and a higher capability of distributing information all over the world, a single email, video posted on youtube, image send by twitter, could change the entire panorama for any company.

“Considers Risk Interaction: Adopts an approach that does not solely consider single risk events, but also takes into account risk scenarios and the interaction of multiple risks” (Deloitte, 2008)

Therefore the ability of any company to react is much less, or if we see it from another perspective it demands a higher level of reaction.

In the past many companies just considered “one side of the coin”, That is only “downside” aspects of risk were analyzed. Today with a more global view, all companies work in reducing costs and maximizing profit, with this approach the “upside” aspects of risk will help the company considering: new products, entering new markets, increase profit by measuring risk in a correct way.

So, from a personal point of view, risk issues are no longer static and will need a different approach in order to reduce any possible negative impact. After reading and searching about the different approaches towards Risk,...