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RISK MANAGEMENT PERSPECTIVES · ORIGINAL ESSAY OCTOBER 2025

Stop Chasing the “Unprecedented Volatility” Frisbee: Back to Risk Basics

Why risk managers should resist headline-driven volatility narratives and concentrate on controls, resilience and learning.

Why risk managers should resist headline-driven volatility narratives and concentrate on controls, resilience and learning.

Original publication: Dr Jimi M.V. Hinchliffe, LinkedIn, 18 October 2025. This is a condensed Academy adaptation of the original argument, not a replacement for the full article. Read the original on LinkedIn ↗

The attention trap

The original essay argues that availability bias, attention economics and the speed of commentary can exaggerate perceptions of unprecedented volatility. This is an argument about prioritisation and perspective, not a claim that geopolitical or macroeconomic shocks are irrelevant.

Fix the operational fundamentals

The article prioritises proven resilience against important-business-service disruption, third- and fourth-party dependencies, change and technology debt, usable management information, AI governance and fit-for-purpose GRC tools.

Build resilience instead of relying on prediction

Maintain appropriate buffers, diverse dependencies and rehearsed playbooks, including decision rights, escalation triggers and communication. External shocks should be converted into scenarios against which preparedness can be tested.

Keep geopolitical scenarios proportionate

The original suggests maintaining three or four regularly refreshed scenarios that link external developments to concrete financial and operational consequences, and exercising them across functions such as Operations, Treasury and Communications.

Use a small set of indicators that matter

Focus on a manageable set of leading and lagging KRIs, including the quality of governance challenge, third-party exit exercises, model reviews, recurring root causes and delayed actions. Ask what changed, why it matters and what the organisation has done about it.

Learning and correction are the advantage

The conclusion emphasises intellectual humility, error detection and disciplined learning. Avoid treating forecasts as certainty; improve controls and recovery capability in response to actual weaknesses and incidents.

Academy takeaway: Horizon scanning matters, but it must feed proportionate risk assessment, scenario testing and decisions. An active regulatory or geopolitical news feed is not itself evidence of effective risk management.

Related Academy Insight: ORM — Back to Basics: 10 Fundamentals →

Original article

Read the complete original LinkedIn article ↗