Reference no: EM133166624

A challenge to any strategic plan is to manage the unknowns. Unknowns are those problems that can unexpectedly arise, and most times organizations are not prepared to address them. Southwest Airlines can utilize tactics that have worked well in project management to help formulate strategies to address the unknowns. Utilizing qualitative risk assessment should be their primary focus. As you know, this is a hit or miss exercise where experts and or company executives will try to formulate tactics that will mitigate the impact of major events to the best of their availability. Moreover, there can be some errors and inaccuracies in using this approach. Also, allocating additional resources to address these unpredictable events may be another tactic that would be useful. However, would these additional expenses impact the company's bottom line? I am sure that many companies that used this approach has pulled back some of the resources since 9/11.

What are other approaches that companies can use to manage unknown events?