The Elevated Value of Risk and Flexibility

 


view of one person overlooking a canyon

 

Uncertainty and ambiguity are constant conditions in today’s market climate. Leaders face an ever-increasing and evolving set of operational variables, whether it be a disruptive start-up competitor that redefines customer expectations, a new tariff stifling your European division, or an emerging social media movement that challenges your brand’s equity. Successfully navigating this environment requires continuous, transformational change. Amid unpredictability, your ability to minimize risk and adapt to capitalize on emerging opportunities has intrinsic value in transformation efforts. In stable times, many business leaders may overlook the importance of risk and flexibility (i.e., risk elasticity), narrowing their focus on financial or operational performance metrics. Our research shows that business leaders most commonly look to operational cost (63 percent) and increased revenue (60 percent) to value transformation initiatives.

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