In a world dominated by technological advancements, the ancient wisdom of Greece, India, Egypt, and Tibet is finding resonance in the realm of risk management. These cultures proposed that the world is composed of four fundamental elements: earth, water, air, and fire, and for modern risk management professionals, this ancient understanding holds a profound truth.
An analogy posits that the inherent dangers of earthquakes, floods, windstorms, and fire are intrinsic to the very essence of our reality. These elements serve as the foundation for contemporary climate-induced risks affecting supply chains. The analogy goes on to propose that all materials, structures, and natural phenomena have a tendency to return to these fundamental elements or reclaim spaces shaped by both natural forces and human activities.
The concept aligns with the idea of entropy, governing the thermodynamics of the universe. Entropy dictates that without an injection of energy, disorder replaces order. In the context of risk management, this disorder manifests in the aftermath of disasters, emphasizing the need for proactive measures.
Climate change, driven by technological and…
