How to Prepare for Business Volatility

How to Prepare for Business Volatility


Wild swings in global economic and political prospects can wrong-foot even the most established large organisation. Businesses bear the brunt of secondary shocks as contracts are deferred or orders are rescinded. How do you cope?

Know where you play

Getting to grips with your industry success drivers even in times of certainty prepares you for calamity. Your business may be exposed to currency exchange rates, imports/exports, energy input costs in manufacturing, global demand patterns or sharp consumer swings in luxury or FMCG. Master the trajectory of the relevant drivers at all times.

Know the epicentre

Determine the concentration of pain in the value chain and its migration direction. Proactively plot your business’s incidence to the peeks and valleys as it migrates through the value chain.

Determine your exposure and manage the cost and revenue risks. A deteriorating exchange rate will hit your import business in early phase volatility, while a deteriorating energy cost will feed cost pressure in second or third phase profit volatility.

Related: 6 Strategies to Bounce Back From Financial Setbacks



Lizwe Nkala
Lizwe Nkala is an influential corporate strategist working at executive and board levels of large corporations. He is the MD of Flamingo Moon Consulting and a founding partner of the Strategic Thinking Institute, where he coaches executives and presents tailored strategic thinking seminars and webinars, and provides strategic thinking tools and templates on a subscription basis for corporate clients. For more, visit