World Economic Forum warned about ‘boiling frog’ syndrome

Scientific research has discovered that frogs cannot perceive an increase in surrounding water temperature if the water is heated gently so that the increase is slow and steady. Eventually the frog dies, still unaware of the threat it faces.

MarketWatch has reported that a panel of experts at the World Economic Forum’s meeting in Davos have warned the organisation that ‘international corporations suffer from boiling frog syndrome and are ‘in denial about the daunting array of risks they face, including terrorism, disease pandemics, climate change and a potential Chinese economic slowdown’.

‘Corporations … all-too-often plan only for the risks they already know about’, MarketWatch reports panellists saying. "Unfortunately, there is a widespread tendency among many businesses to be well prepared only for the last event that has occurred - not the next one coming around the corner," the panel wrote in its report to the World Economic Forum. "Denial is an all-too-common strategy, and there is a natural tendency not to react until the catastrophe is unavoidable."

Panel members called on businesses and political leaders to think innovatively about how to face down the growing array of risks and warned that without new approaches, the dangers would grow.

•Date: 28th January 2005 • Region: Various •Type: Article •Topic: BC general
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