The story goes like this,”A frog was put in a heating pot without a lead. As the water gradually heats, the frog kept on adjusting its body temperature. This happened until the water reached boiling point. It was at this point that the frog decided to jump out of the pot. Unfortunately, the frog had used up all its energy during temperature adjustment s. The poor frog died.”
Similar behaviours are being observed in the world of commerce this day.
It’s public knowledge that long term trends in urbanisation, mobile phone usage, economic growth in sub-Saharan Africa, robotics, rising food prices and water scarcity will affect investments and supply chain trends.
The difference between long-term trends and any other risk is that these ones offer an opportunity to incorporate them into the company’s strategy, thereby profiting from them.
Nonetheless, like the proverbial frog, many companies, may not detect, prepare for, or take advantage of these slowly shifting trends.
Clement Chirenje is a certified financial risk manager. He is an indipendent risk management consultant and can be contacted on: