As companies remedy shortages related to Covid-19, many are wondering what will be the cause of the next big disruption. CTL Deputy Director Jim Rice says that instead of focusing on solutions to specific disruptions, that they should instead build resilience to protect against any threat.
“We are seeing a recency bias in which people say we need to prepare for the next pandemic,” says Rice. “But the next big disruption is probably going to be something else. My guess would be a cyberattack, but nobody knows. It does not matter if you lost your factory because of a labor strike or a hurricane. You still need a plan to recreate your core capabilities. Resilience is not mitigation — it is creating the capability to recreate lost capacity.”