There is a troubling disconnect at all levels from within and across nations to within and across industries to businesses. It is time we understand, acknowledge and manage the interdependencies be it within a business, within an industry or within a nation.
1.Do you see disconnect within your nation, its government, industries, organizations, academia (NGIOA)?
2.Do you think NGIOA within you nation has the capability to understand and acknowledge the interdependencies?
3.Do you think any meaningful steps are taken to manage the interdependencies within your NGIOA?
Please specify which nation or industry you are addressing.
With an eye on the future I look forward to a meaningful dialogue to address critical interdependency risks. Let me know your thoughts.
Jayshree Pandya PhD
Global Risk Advisor
#1 by mckibbinusa on April 23rd, 2009 - 3:17 pm
If one views interdependency as correlation, then yes, correlation between independent variables increases the variance of the dependent variable, which translates as greater risk. So yes, interdendency would add risk. The question then becomes, do we we seek to manage those interdependencies, or to reduce or eliminate the interdependencies (?). I would suggest that the latter is the proper approach given the difficulty of determining the level of correlation (interdependency) between independent variables (even when we have continuous data). The axiom could also be, “avoid complexity.” Good luck!