We Live and Work
in a High Risk World
As demonstrated by recent events, the 21st century portends to be more perilous than man has ever before experienced. Already, disasters, both natural and man-made, have befallen our nation and repeatedly shaken our economy. We live and work in a very dangerous world and the unspoken question on most Americans' minds is, “What will happen next?”
The question is not “will there be another major disaster,” but rather “when, where and what will occur?” Nor is this a pessimistic viewpoint. Whether we like it or not, our nation is engaged in what can only be viewed as the opening phase of a long term, large scale war on Terror. To expect that 9/11 was an isolated incident or the only attack that we will experience on our shores would be naïve indeed. Al Qaeda has publicly announced that they are targeting the United States homeland again and their intention is for the scale of this attack to dwarf that of 9/11. Neither can we expect that the current series of violent weather systems is an anomaly that will soon pass. The National Weather Service has concluded that we are entering a cyclic twenty year period of severe storm and hurricane activity. Meanwhile, other threats from Avian Flu to earthquakes, floods and the potential for large scale energy shortages overshadow our fragile economy.
When such disasters do strike, our first priority is that of caring for the initial toll of physical human suffering and rightly so. There are many organizations which stand ready to help. However, the devastating economic toll can have a long lasting impact on both individuals and organizations. While government agencies have an emergency plan for short term disaster relief, the astonishing reality is that most businesses make virtually no provision, either short or long term, for the unexpected.
Today, large-scale reductions in staff, Just-In-Time Logistics, Lean Manufacturing and other current business practices have left American businesses highly vulnerable to a wide range of business disasters and disruptions. Operating on razor thin inventory levels and with supply lines stretching half way around the globe, their logistical vulnerability is immense. Meanwhile, repeated reductions in their managerial and hourly work forces also leave them with little potential to respond to unexpected emergencies. Together these factors place modern business at high risk, should a significant interruption occur at any point along their route to market.
Although there is no way to eliminate these risks completely, it is possible and prudent to seek to minimize their negative impact and to optimize resulting marketplace strategies through a careful analysis of vulnerabilities and response pre-planning. This exercise has come to be known as Strategic Scenario Design and Response Planning. Just as insurance is necessary to mitigate risk of loss, forward thinking companies prepare for and minimize the potential risk of calamity. The alternative is to do nothing, until somewhere in the world, a natural or man-made disaster strikes and its repercussions cripple your business.
If you are concerned about the potential dangers and risks facing your company and would like to learn how to better protect your future, then contact us. We will introduce to you the important benefits of Strategic Scenario Design and Response Planning for your organization, so that through preparation you can protect your business from the unknown.
Let us help you minimize the risk of a dangerous world.
DI FRANCES & ASSOCIATES, LLC
208 E. Oak Crest Drive, Suite 200
Wales, WI 53183-9700
262.968.9850