If you've studied SABSA to foundation level, you may recall how systemic risk navigates the domain model. If a risk materialises in a domain, the impact it has can act on the superdomain causing a risk event to occur there. Ok, simples right? Well Maurice was recently asked if this effect can occur in the opposite direction, i.e. from a domain to its subdomain. The search for a concrete example or a contradiction started.

In this episode we consider this question which leads to further questions about the nature of hierarchy in the domain model and co-existent parallel domain models – but no quantum entanglement (yet). Have a listen and then join the debate, or if you have the answer put an end to it.

With hindsight, declaring a risk an unknown unknown is often no more than an admission of a lack of foresight, a lack of imagination. How many risks that are actually realised were really inconceivable in advance? Risk identification is a process that is resource constrained, and reasonably so. But with more time, more perspectives, more insights, more intelligence the chances are you'd have identified the risk. Perhaps to do so would have not been cost effective; or you may have decided to limit analysis and not successfully managed an outlier risk. But to declare it an unknown unknown (after the fact) is rejecting an opportunity to learn. Is it not fatalistic to shrug one's shoulders and say "How could I have known"?

In this episode we discuss Unknown Unknowns, along with their bedfellows Known Knowns, Known Unknowns and Unknown Knowns, and their place in the identification and management of business risks.

The last two years have seen changes that few were prepared for. In the aftermath we can argue whether it was a black swan, grey rhino, or octarine unicorn event but ultimately once the overture is done what matters is your ability to adapt to the new world order. Even if you had a specific plan in place, as such events unfold the situation will likely evolve in unpredictable directions.

Over time, change external to your sphere of control is inevitable. Some changes are large shocks that affect nations, regions or the entire world. Some only affect certain industries or a subset of business in an industry. While mitigating and planning response to known, but uncertain, events is important it is also important to avoid assumptions about future states and to build organisational structures and processes that can adapt no matter what comes over the horizon.

In this episode, we discuss being Adaptable and Adaptive. Listen to our conversation to hear our thoughts on the maybe subtle but important differences between these very similar terms.