9 February 2017
The review of trends and risks are an important annual activity as part of strategy planning of successful organisations.
A handy process is to start with a list of trends or risks. For each trend or risk, ask what effect it might have on your organisation. These items could be positive or negative and you might have many for each.
Each item should be rated by its likely impact on the organisation, being high, medium or low. Deal with the high impact items and ignore the low impact ones. Secondly it should be rated as strategic, tactical or operational, which will determine if it is a board, executive or staff issues. The mitigation of a negative impact or the leverage off a positive impact should then be determined and enacted in the organisation.
These trends or risks can come from many sources. I have for many years used a trend TEMPLE. TEMPLE standing for Technology, Economic, Management, Politics, Legal and Environmental.
The World Economic Forum has just released its global risks for 2017 which could be used for such a review.
The top five risks in terms of likelihood included;
- Extreme weather events
- Large scale involuntary migration
- Major natural disasters
- Large-scale terrorist attacks
- Massive incident of data fraud/threat
The top five risks in terms of Impact included;
- Major systemic financial failure
- Water supply crisis
- Food shortage crisis
- Chronic fiscal imbalances
- Extreme volatility in energy and agricultural prices
While you might say, it won’t happen here, the risk might be around what happens when it occurs in another location or country.
The full report can be found at www.weforum.org. NixonClarity facilitates strategic planning activities including strategic frameworks, trend reviews, SWOT Analysis, environmental scans and assisting organisations in developing strategic plans that are successful and yield results.