The World Economic Forum has just released a report ‘From Risk to Opportunity‘ that looks at six different themes
• The challenge of a shifting balance of power • The challenge of natural resource scarcity • The challenge of inclusive growth and equality • The challenge of economic uncertainty • The challenge of fragile states and new conflicts • The challenge of global risk management
This is a wide ranging Report that this Blog will come back to, but it includes this comment that is critical to the situation we find ourselves in, as SystemUK, and Globally
“There are commonalities between all sorts of disparate risks: the BP Gulf disaster, the terrorism incident in Germany, Wikileaks, the euro zone crisis. The interconnectedness is that they are all out of the flow of day-to-day events. They are low probability but high consequence events.” Axel P. Lehmann, Member, Group Executive Committee and Group Chief Risk Officer, Zurich Financial Services, Switzerland; Member of the Global Agenda Council on Systemic Financial Risk
There was a time when organisations were increasingly aware of the work of thinkers in ‘Quality’ such as Deming, Juran and Crosby but those were simpler days and we have moved on to a confusing, reductionist world of CSR, Environment, H&S and Sustainability.
These ‘Quality Gurus’ understood the core concepts of Organisational Leadership’ and the costs of less than perfect ‘Quality’ of organisational and product/service performance , of not doing the right thing right, every time.
Central to this was understanding the risks and costs of external Failure Demand arising from actions that ignore the consequences of the economic, environmental or social downside of decisions. The News International disaster is a current example.
Unless we rediscover these eternal truths there is little possibility we can create ‘Sustainable’ organisations and societies, as Quality and Sustainability are just the two faces of the same coin and ‘Sustainable Development’ is the journey of continual improvement towards perfect ‘Quality’