Chapter 15: Emerging Issues in Risk Management

Whereas the context in which organisations operate is increasing in complexity and becoming less predictable, their leaders must distinguish what is complex in the internal and the external context.

As organisations grow larger and more intricate, an array of functions gets performed in them. For example, an aircraft manufacturer firm could have aircraft designers, outsourced parts to many suppliers and sub-contractors, a workforce that assembles the aircraft, people in a human resources division that look out for employees, administrative and finance employees that aim to make sustainable the operation, and sales force and intermediaries (financial) that negotiate the contracts with airlines and/or leasing companies, etc.