Risk Management: A New Context in VUCA World

Abstract

The purpose of this academic article on risk management in a new context of the disruptive world was to review knowledge of risk management concepts and propose useful guidelines for risk management in the disruptive world to prepare the organization to cope with the risk situations due to the current of change that has been full of volatility, uncertainty, complexity, and ambiguity, known as “VUCA”, which has been continuously increasing and connected to a variety of risk factors that make it difficult to predict future trends. The review of the literature related to risk management and the global situation in the VUCA world has raised awareness and realization of the importance of risk management affecting the survival of both public and private organizations. This article proposed a conceptual framework to elevate risk management to be aware of the situations of VUCA global risk dynamics through comprehensive risk management in all dimensions, which can be achieved by constantly educating and increasing the skills of all members in the involved organization including risk management regarding environmental, social and governance responsibilities to prepare for the environment under uncertain situations and lead the organization to sustainable growth.