VUCA-The challenges ahead
VUCA- acronym for Volatile, Uncertain, Complex and ambiguous. A term that has been recently referred to by Fin Min Mrs. Nirmala Sitharaman, in FICCI 2022 Conference.
What VUCA stands for:
V-Volatile with Unstable challenges
U-Uncertain with Unknown outcomes
C-Complex with many interconnected parts
A-Ambiguous with lack of clarity.
Summary of Fin Min's Speech:
Referring to future of finance post-pandemic as VUCA, she said it is very difficult to point out any aspect of finance & say how it is going to be in the future.
She said that one has to think within the available parameters and plan with sense of urgency, to be ready to prevent any black swan events (events with unprecedented consequences).
Also emphasized that, particularly with reference to future of finance, there is a sense of urgency, with which planning needs to be done for something, which is going to volatile and more influenced by extraneous factors for each of us and hence we must be sure to plan it in such a way that we can face any eventuality.
She ended her speech mentioning that, considering the recency of covid situational uncertainties, we have to be that extent cautious without sounding cynical.