Resilience Digest May’25
Balancing AI Opportunity and Risk: Strategic Imperatives for Resilient Organizations
In News Now
Microsoft introduces new adapted AI models for industry
Industry 4.0 – 42 percent of companies are already using AI in production
WEF_AI_in_Action_Beyond_Experimentation_to_Transform_Industry_2025.pdf
Why
- AI-driven risks: AI brings challenges like flawed decisions, black-box opacity, cyber threats, and data misuse. Risk managers must assess and mitigate these.
- Dependencies & control loss: AI boosts efficiency but creates reliance on platforms, data, and software. Without governance and backups, crises may lead to loss of control over critical systems.
- Strategic failure: Ignoring or delaying AI adoption risks competitiveness. Risk managers must see inaction as a strategic threat to market position, innovation, and resilience.
What to Ask
- How adaptable is your company to technological change, and how are internal complexity and decision-making speed monitored as risk factors?
- Contingency Planning for AI System Failures:
Do you have contingency plans in place in case of AI system malfunctions or loss of control in automated environments?
Trump’s Tariffs Threaten Global Trade and Supply
In News Now
Donald Trump’s tariffs on China, EU and more, at a glance
“Liberation Day” Tariffs Explained
US ends tariff exemption for small parcels; policy to burden local consumers, businesses: expert – Global Times
Why
- Global supply chains at risk: Reciprocal tariffs and trade tensions affect the international flow of goods. Risks in the supply chain (e.g. delays, cost explosions, material bottlenecks) must be identified at an early stage and strategically mitigated.
- Reputational and governance risks: Reactions to political measures (e.g. relocation, reactions to sanctions) can influence image and stakeholder trust.
What to Ask
- How does your company identify and mitigate risks to global supply chains caused by reciprocal tariffs and increased customs barriers?
- Planning Security and Financial Risk Scenarios:
What scenario planning tools do you use to assess the financial impact of customs changes and trade tensions on production and sales markets?
The Heat is On: Europe’s Climate Challenge
In News Now
European State of the Climate : extreme events in warmest year on record
Parts of Italy and Switzerland at risk due to extreme weather • Water News Europe
The relevance of climate change for critical infrastructures – ESKP
Why
- Operational Disruptions and Business Impact:
Increasing weather extremes (floods, heatwaves, storms) pose direct threats to infrastructure, supply chains, and site operations. This can lead to production halts, transport breakdowns, or power outages, requiring rapid response and continuity planning.
- Rising Regulatory and Strategic Pressure:
ESG regulations, EU taxonomy, and supply chain laws are pushing companies to assess and disclose climate risks. Proactive management strengthens resilience, compliance, and corporate reputation in an increasingly climate-aware environment.
What to Ask
- How does your company prepare for and respond to operational disruptions caused by heatwaves, floods, and storms across European sites?
- How do you ensure your company complies with EU taxonomy, ESG disclosure standards, and supply chain due diligence laws related to climate risks?