Why Your Business Fail To Survive The Test Of Time

Why Your Business Fail To Survive The Test Of Time

When it comes to business downfall, there are things we need to understand as to why your business fails to survive the test of time.

In a complex world, emerging from one crisis to tackle another, risk management is crucial. Business strategy must make room for “risk management” and promote risk management as a key element of competitiveness.

In an interview, last spring, Denis Kessler, boss of the reinsurer Scor, assures us that “the twenty-first century will be that of risk management… or will not be. “This idea is indisputable: the health crisis has highlighted the need to think upstream of the risks of any economic activity, to react quickly and adapt to the slightest difficulty. In his day, with his visionary spirit, Leonardo da Vinci already said: “Not to foresee is already to moan.

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Risk management makes it possible to constitute a dashboard that feeds the strategy as to the directions to be taken in the conduct of the business. The company’s main risks are identified, assessed, and then managed.

The risks are multiple and depend on each company, but the most common have already been identified: human, regulatory, financial, related to competition, reputation, supply, fires, breakdowns, or other cyber attacks. The list is not exhaustive.

The growing power of crises Until recently, companies, but also populations and governments, gave an infinite horizon to economic growth. The globalization of trade has accelerated world trade and reinforced the idea of a flourishing economic future, which would not be subject to successive crises. The world was a vast playing field, dominated more by the opportunities to be seized than by the risks to be mastered.

The world is now experiencing instability that is difficult for businesses to understand. The tension is permanent and the sanction can take many forms: a media attack via social networks, a stock market price that unscrews after the attack on an investment fund, a crisis of confidence that makes the company falter at following the disclosure of information.

Political, economic, health, or even climate, crises follow one another and wear out organizations. Companies must be prepared upstream to face them. In the last few weeks alone, in addition to the lingering health crisis, companies have faced daily cyber-attacks, weather events, the blockage of the Suez Canal, or the OVH data centerfire. Companies emerge weakened from these crises, which have an impact on financial results, innovation, and even employee confidence.

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In the worst case, if the company fails to withstand the shock, its demise is an option. Until now, as a last resort, the company relied on its insurer or on state intervention.

In other words, companies and individuals must pay detailed attention to risk management.

Why Your Business Fail To Survive The Test Of Time