Risk resilience is as important for countries as it is for companies. From a systems-thinking perspective, a risk-resilient country is one that can adapt to changing contexts, withstand sudden shocks and recover to a desired equilibrium, and all while preserving the continuity of its operations.
From natural disasters to financial shocks, global risks are exogenous events, which go beyond the capacity of a country or corporation to manage on their own. Traditionally, the practice of risk management has focused almost entirely on preventable risks, where a culture of strict compliance can mitigate, or even avoid, worst-case outcomes. Filling the analytical gap on global risks, the World Economic Forum publishes annually its Global Risks report to assess the likelihood, impact and inter- linkage of 50 such risks. Its central prescription is that countries as well as companies need to focus much more on building their resilience.
What does it mean for a country to show resilience in the face of risks it cannot manage alone? A structural engineer would define resilience as the capacity to withstand more stress, and to return to normal after a stressful event. This is a suitable definition for a bridge or a skyscraper, but not necessarily for a country. History has very few examples, if any, of a country that withstood a major stress only to return to its previous state.
See full Press Release: http://www.pwc.com/en_GX/gx/governance-risk-compliance-consulting-services/resilience/issue3/resilience-what-it-is-and-why-its-needed.jhtml
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