2008 and beyond, we have moved into new territory for managing risk at the macro level.
Companies and individuals are starting to see that risks exist that can wipe them out.....it just could not happen to them.
From the banking sector, mortgages, to even the value of the dollar that everything you own is based on is at risk.
We have extreme concentration of power and money in sectors now, single points of failure that can fail three times or more removed from you, but can bring down your financial position.
Those are just the man made risks.
Japan has suffered from "the lost decade" where they have not recovered from their financial woes...they were the manufacturing jewel of the world but due to competition in India, China, and Korea, were never able to regain top spot and margins on their products. They face increasing competitive nations who can go lower on costs.
Add to that the recent nuclear accident caused by the earthquake and the tsunami. The costs are devastating.
If you think it can't happen to you, think again.....read about how Suzuki Motors is looking to move entire factories out of danger zones, even to move some of them out of country.
Short article here.
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