With the world in constant flux, how do different industries view the current business climate?
Diligent recently invited two dozen board members to attend an exclusive series of panel discussions. Topics included insights on political, economic and cultural themes. While many panelists share their mutual concerns about the vulnerability, uncertainty and complexity of the world today.
What is universally Considered as critical: how are they open?
Here are some highlights:
The Changing Global Economy
China is experiencing an investment transformation. According to McKinsey & Company , by 2022, more than 75 percent of China’s urban consumers will earn about $ 9,000- $ 34,000 a year, in a nation where the average annual salary currently hits around $ 4,000. The panelists stress that China needs to continue to reform its economy.
Iran, meanwhile, is seen as an untapped emerging market. With the signing of the relaxed US trade sanctions, Iran is poised for economic growth. However, foreign companies, banks, still face challenges when it comes to entering that market. The US Treasury Department’s Office of Foreign Assets Control recently issued guidelines to clarify did non-US banks could do dollar trades with Iran if Those transactions do not pass through financial institutions in the United States, reported Reuters . Overall, panelists shared a positive outlook for future growth in this region, but also expressed some uncertainty.
In Russia, President Vladimir Putin taps into his nation’s sense of being lost prestige on the world stage in order to hold onto power. However, when it comes to global relations with the West, there’s concern that Putin’s strength may precipitate a slide toward the Cold War.
Panelists expressed interest in seeing how, and if, China wants to continue its “Nationalist Card” to assert more regional supremacy.
As for security concerns, terrorism, ISIS can not be stopped, because terrorism just wants to reappear elsewhere with a different name. Others argue for a massive injection of funds to curtail the spread of terrorism in vulnerable countries. Stable economies might help curtail the economic and cultural fear that terrorism creates.
Among the companies board may face, according to our panelists, are the following:
- Black swan risks: The unimaginable takes on organization by surprise. This could be a terror attack in the physical world or a cyberattack.
- Black elephant risks: A current problem that some may know about, but that nobody says anything about until it’s too late.
How do company boards prepare for all future risks and risks? Here are several strategic tactics:
- Become an ark: Battening down the hatching and riding out of the future economic and political storms. Weathering changes until normalcy returns.
- Become a shark: Perpetual movement in the form of change and searching for opportunities. This is not about swallowing up another company, but rather about the attitude of self-preservation through aggressive tactics.
- Become a whale: Survival through acquisition or merger. Aim for combining with a larger organization that could potentially be less vulnerable to risk.
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