ABSTRACT

Recent years the world has been in continuous change. This has been caused by the economic crisis. Changes in the external environment of an organization can decisively influence its internal one. A parallel can be drawn between this type of interaction and The Second Principle of thermodynamics, which describes the balance between two environments influencing each other. If an organization’s external environment is out of balance, meaning that it has a higher level of entropy, the entropy of its internal environment will increase as well, However, the risk of external instability can become an advantage for an organization that has a working risk management system. A risk management system can control risk, thus transforming it into an asset.

The Change, is it a Risk? [An Essay About Entropy and the Risks of Change]