Recent decades of globalization have created a world that was complex, interdependent and more interconnected than ever witnessed before. The implications of growing interdependence have been mainly discounted while policy makers have focused on facilitating integration. International integration has brought many advantages, by creating new forms of systemic risks, but it's also created fragility.
This article offers an understanding of the challenges they pose as well as these new 21st century systemic risks. The 2008-09 financial disaster is used to illustrate the failure of even advanced global associations to handle the underlying forces of systemic risk, which has been amplified by our growing interdependence. At precisely the same time, technological change has greatly increased the power of individuals to destabilize powerful systems. Pressing reform of global governance structures and associations is essential to improve direction and the mitigation of such world-wide hazards. Likewise, significant changes in risk culture and risk management have to ensure companies are prepared. This informative article implies the first steps to take.
Preparing for the Pitfalls of Interconnectivity Case Study Solution
PUBLICATION DATE: March 15, 2012 PRODUCT #: IIR068-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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