Category Archives: VUCA

8/6/21: World is more VUCA. Less Risk.

 For those who have been my students in recent years none of this will come as a surprise: the world around us is becoming less 'risk-driven' and more 'VUCA-prone'. By VUCA, of course, we mean volatile, uncertain, complex and ambiguous. 

Here is a neat summary via McKinsey:

None of the above data sets are 'risk' in any structured or definitional sense of that terms. None carry known, easy-to-define probability distributions, none have strictly identifiable impact distributions and none adhere to the normal laws of large numbers. These are uncertain events that are also inter-related through complex contagion pathways. 

Good luck fitting actuarial tables to them... 

6/2/21: Longer Trends in Economic Uncertainty


Quite dramatic trends in terms of rising economic uncertainty over the last 21 years:

And, not surprisingly, the rise of uncertainty in Europe, the U.S., and globally pre-dates the Covid19 pandemic. In fact, Europe has been experiencing dramatically elevated uncertainty levels since the start of the Euro area crisis, while the U.S. saw a virtually exponential rise in uncertainty from 2017 on. Global measures of uncertainty have been running high through 2016 and rose dramatically thereafter. 

While amelioration in the Covid19 pandemic dynamics is likely to lower the levels and the volatility of the uncertainty in global economic systems, it is highly unlikely to return us to the pre-Global Financial Crisis state of affairs.

2/11/20: U.S. Public Health Systems Are Going to Continue Failing After the COVID19

Pre-conditions: amidst ageing population and declining life expectancy, both political parties' platforms effectively represent extension of the status quo model of healthcare provision.

Question: can the U.S. actually sustain any semblance of or pretence at having a functioning healthcare system, given the expected trajectory of demand for healthcare services?

Answer: not a chance:

Source of the chart: McKinsey (not Communists who support nationalised health).