Weekly Wrap – 16th October 2013

VIDEO HIGHLIGHTS

0:51 – Planning for risks that have no influence over

1:21 – Doing nothing is a dangerous option

VIDEO TRANSCRIPT

Hi I am Tom McLeod, Managing Consultant of McLeod Governance.

This is what I would be thinking about this week.

Hopefully by the time you are watching this video, the US debt crisis is but a distant memory.

Today’s Weekly Wrap looks at managing global catastrophic risks and the reason why we raise the US debt crisis is the severe warnings that have been given about the impact on the global economy should the United States not be able to pay its debts.

Now this post is not about the politics of the US Congress – as interesting as that may be.

Instead we are looking at how your organisation plans for and operates in environments where there are global catastrophic risks over which you have absolutely no influence to change the outcome.

So my question today is rather short and sweet – what are you doing as an organisation to prepare for the default of the United States Government in the event that it does happen?

Now you might say to me that you will see how it plays out.  But would you operate like that with any other risk?

Are there some risks that are so big and so unmanageable that you have to surf with the wave of uncertainty that comes with them?

For me that is a dangerous approach to take.

There is no such thing as a risk that cannot be planned for.  And there is no risk that cannot be considered in advance.

So the challenge that I am putting out to you today is – what would you do in the event that the United States Government cannot pay its debts?

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