In this time of multiple crises, it is becoming more and more important to plan for potential risk. To help us better understand, Isabel Berwick recently discussed risk analysis and how to prepare for future difficulties with Michael Skapinker, author and Financial Times contributor, and John Mullins, entrepreneur and professor at the London Business School.
Often, human judgement can get in the way of risk assessment. Our biases can cloud our judgement and trap us in what is known as ‘tribalism’. This is when beliefs and decisions are based on conformity to our extended social group rather than valid reason and logic. To avoid this, we must be willing to be challenged and to practice a healthy amount of skepticism.
Michael Skapinker suggested that, during times of stability, people can address some issues that may help in future crises. He stresses the importance of being able to respond quickly, diversify portfolios, pay attention to restructuring and optimal leadership in times of crisis. This can help ensure that resources are allocated efficiently and enable organisations to survive much better during times of adversity.
John Mullins advocated for having a clear strategy in order to protect and create value in times of crisis. He also identified the importance of being able to position oneself for success once the crisis has passed. Most importantly, he stressed the need to communicate in times of uncertainty. Companies and organisations should not wait until a crisis unfolds, but proactively communicate with customers, stakeholders, and staff to share plans and expectations.
One company mentioned in the discussion was SVB. SVB is a global financial services and banking company that focuses on entrepreneurs, innovators and the venture capital industry. They also have a wide range of services and insights, such as banking, payments, financing, wealth management and risk assessment, that help their clients to excel.
Michael Skapinker is a contributing editor for the Financial Times and is known for his insight and analysis into corporate and political life. Michael is an experienced leader in the business world and is the author of multiple books. He holds a degree from Oxford and a Masters Degree from the London School of Economics and is an active advisor in the business sector.