The Era of Exponential Risk

In conversations with leaders in business, government, and financial markets, I hear a common theme.

The world has grown incredibly complex. Risk has grown more complex. Supply chain failures; cyberattacks; geopolitical tensions; sanctions and security issues; and extreme weather events — all playing out against a backdrop of economic uncertainty and social unrest.

It’s clear: we’re now living in a new era. The Era of Risk^N – Exponential Risk.

We’re linked by technology and trade, by culture and commerce. This means that risks no longer exist in isolation. As organizations and nations are linked, so too are the risks they face.

For leaders, understanding the new era is imperative: resiliency and sustainable value creation depend on recognizing and adapting to exponential risk. And it’s an opportunity — not just to understand exponential risk, but to get ahead of it.

The past few years alone have brought into focus how our interconnected world creates new, compounding risk.

A military conflict creates a cascading series of risks, from energy insecurity and commodity disruptions to rising inflation and a refugee crisis. A ransomware attack directed at an oil pipeline leads to widespread goods shortages. A devastating weather event shuts down vital supply chains.