I can’t really remember a time when the political landscape was as uncertain as it is today. For most of my life politics and business mixed on long timescales, political decisions set the tax regime and the regulatory environment. Changes are discussed in advance and implemented with reasonable time scales that allowed well run, strategically operated businesses to plan for change. More than that, the best businesses took the time to plan how to use those changes to leverage competitive advantage and unlock sustainable profits that others missed.
Today, politics and business are mixing on daily timescales. Uncertainty on what is coming is greater than ever. Planning is difficult and the risks of undertaking projects to be ready, for example, leaving the single market, is that the end result will be very different from the current sense of direction. Do you act quickly and risk getting the basis of your actions wrong, or act slowly and miss the opportunity to take advantage of others caution. The cost of a mistake could be very high, the benefit from success is less predictable than ever.
That’s a very different risk management landscape than many businesses have ever faced. Are you embracing, bemused, untouched or ignoring it? Are you competitors acting differently?
What’s the biggest risk that the current uncertainty brings to your business?