Adapting to Risks and Creating Value: Lessons from a Personal Story

Introduction:

In this LinkedIn article, I want to share a personal story that unfolded last week and prompt thought-provoking questions along the way. By reflecting on this experience, we can gain valuable insights as individuals and professionals, exploring how to adapt to changing environments, mitigate risks, and innovate to create value even in uncertain times.

My Personal Story:

Last week, I returned home in the evening after a tiring gym session and parked my car as usual only to discover the following morning that my car had been broken into. The thieves not only smashed the window but also took my steering wheel, iPhone cables, charging dock, and sunglasses. The shock I experienced quickly turned into frustration, leaving me with several questions racing through my mind. How did this happen? Who would commit such a crime? And why target the steering wheel?

Response and Insights from Insurance and desktop research:

Upon reporting the incident, I realized that although the damages were covered by insurance, the cost and time required to fix everything would be substantial. The window replacement alone was priced at ￡700, and the steering wheel cost ￡2500. Additionally, I had to cover expenses for recovery, personal belongings, and labor, making it an expensive break-in.

Delving deeper into the broader context of car thefts and the market for stolen car parts, I discovered that a shortage of spare parts, worsened by the pandemic-induced supply chain crisis, was a major driver. This scarcity affected not only BMW vehicles but other brands as well. Even a minor car accident triggering airbag deployment posed a problem, as replacement options were limited due to the scarce supply. The resulting demand and inflated prices in the grey market made car crime, including steering wheel theft, more profitable than ever before. In fact, there has been a staggering 68% increase in steering wheel theft in UK vehicles since 2020.

Moreover, reflecting on the vulnerability of vehicles themselves, it became evident that the design aspect had not accounted for preventing thieves from targeting steering wheels. The market dynamics were vastly different when the vehicles were originally conceived. However, circumstances have dramatically changed today.

Blame and Responsibility:

This situation raises questions about blame and responsibility. Are the thieves solely to blame for their illegal acts and the harm they cause? Or does the responsibility lie with the system, which fails to provide opportunities and education? Perhaps it rests with the auto manufacturers, who failed to anticipate shifting dynamics in demand and supply. Alternatively, I question whether my own awareness of market dynamics could have prompted me to invest in extra precautions, such as a steering wheel lock, to better adapt and prepare for the new world we find ourselves in.

Learning from the Story:

Moving beyond the personal impact, this story carries valuable lessons from a business perspective. It challenges us to consider how we can adapt to changing environments and customer needs, mitigate risks and threats, and ultimately innovate to create value in uncertain times. These questions foster introspection and encourage discussions that can lead us to find collective solutions.

Looking Ahead to 2024:

Taking this exploration further, I find myself contemplating the future - are we prepared for what lies ahead in a constantly changing world?

In the year 2024, what are the most significant risks that businesses and their leaders are likely to face? As a sales leader, I believe there are specific areas that sales teams should focus on to assist businesses the most in FY24. Here are my top 10 risks for business leaders in 2024:

top risks that businesses in Europe may face in 2024:

1. Economic instability, potential recession, and market fluctuations.
2. Fallout from Brexit affecting regulations, trade agreements, and supply chains.
3. Geopolitical tensions and proximity to conflict regions.
4. Climate-related risks, including extreme weather events and regulatory changes.
5. Digital transformation challenges, Artificial Intelligence, cybersecurity threats, and technological disruptions.
6. Regulatory compliance, such as Artificial Intelligence Governance, GDPR, environmental standards, and competition laws.
7. Supply chain disruptions and logistical challenges.
8. Talent mobility issues, skills gap, and workforce diversity.
9. Trade uncertainties, changing policies, and supply chain reconfigurations.
10. Health and safety concerns, including COVID-19 impacts and future health crises.

By recognizing and addressing these risks proactively, European businesses can build resilience, adapt to changes, and seize growth opportunities in 2024. Strategic risk management, staying abreast of external factors, and fostering innovation will be key to navigating the evolving business landscape effectively.

Conclusion:

In conclusion, this personal story ignited my curiosity and I hope yours as well to incite reflections on evolving markets, shifting dynamics, and the constant need for adaptation. As we navigate challenges and uncertainties, we must continuously evolve and embrace change to discover innovative solutions. Let's embark on this journey of exploration and understanding, positioning ourselves to thrive in a rapidly transforming business landscape.

I would greatly appreciate your thoughts and insights on the risks business leaders are expected to face in 2024.