COVID-19 confirms the ongoing presence of volatility,
uncertainty and complexity in our economic and business
environments. To survive, many business managers have learned how
to solve increasingly complicated, complex and often, non-linear
problems. In contrast, traditional approaches to understanding the
causes of, and quantifying, economic loss have largely retained a
strong technical bias, rather than adapt to current business
dynamics.
Last week's article discussed the role that timing plays in
apportioning losses between two events. This article considers how
traditional approaches can be adapted to today's conditions to
deliver more commercially-attuned insights into the underlying
causes of loss.
