Do you think the world has become more volatile?
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It does seem like there is a lot of uncertainty at the moment. Here’s my list but I may have missed some…
- War in Europe, leading to Fuel crisis and food shortages, drives inflation to 11%.
- How will the war end? Will there be instability in Russia
- Interest rates then rise significantly to reduce inflation.
- Climate crisis, leading to record temperatures across the world and serious fires in many holiday locations.
- Risk of increased migration caused by food shortages.
- The “fix” is a commitment to “net zero” with a switch to electric cars and green sources of energy.
- Rise of AI and likely restructuring of the employment market.
- Reversing of 30 years of outsourcing production to China?
- Will Biden win the next election? Is he strong enough for the next 4 years?
- Change of Government coming in the UK?
- Likely to have minor impact versus the others above, BUT will taxes change?
Does the top team in your company discuss these issues?
- What could be the potential impact of these items be on your company?
- Can you at least estimate the range of the financial impact?
- Do any of these major changes bring opportunities to your company?
- What could you do to reduce or even eliminate the risk from these items?
If you want to read more on how to your company could address the risks it faces please read a blog written by Brian Kilcullen :-
https://fd4.co.uk/risk-management-can-you-afford-to-ignore-it
The FD4 pitch……
At FD4 we believe that business owners will benefit from having a balanced team to help think through the big important decisions.
At times like these it is even more important to have someone in your team watching your back and thinking about these questions and making sure at least some get answered before you “decide”.
Hiring an experienced finance professional can balance up your team and bring in years of commercial experience.