How Companies Are Coping With Disruption, According To Howard Kunreuther And Michael Useem

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‘If your organization has not yet experienced a serious disruption or crisis, it is probably not a question of whether it will occur, but when.’

‘Company leaders are now more prepared to think about the unthinkable, and to improve transparency, communication, and readiness to weather the worst.’

‘Deliberative thinking … gives greater attention to systematic analysis and complex protocols, both essential for company readiness for disruptions.’

‘A greater risk appetite requires higher tolerance for disruption.’

‘Companies are striving to prepare for and manage adverse events, disruptions, and crises in a more comprehensive fashion under the rubric of enterprise risk management and business continuity planning.’

‘When disaster strikes, if directors, executives, and managers have already put in place a risk management culture and architecture enabling them to take comprehensive action in response, companies will be better prepared to recover from disruption and remain aligned with the firm’s core values.’

‘Critical to a firm’s recovery are leadership and organizational preparedness, a readiness for fast action, a set of key risk indicators, and real-time data on the potential threats at hand.’

‘Bringing directors with prior executive risk-management experience on to the board can strengthen its deliberative oversight.’

‘Company failure to comply with regulations can damage not only a company’s regulation but even shut down its operations.’

Source

Howard Kunreuther and Michael Useem (2018). Mastering Catastrophic Risk: How Companies are Coping with Disruption

New Managers Must Learn To Work With And Through Others

‘New managers must not only learn to work with and through others instead of being self-reliant,

they also need to move from a narrow task orientation to a broader strategic orientation,

which requires the ability to be effective in the context of the broader organization,

with all its internal and constituents.’- Carter Cast