Leadership Role in Managing Risk in a Vuca Environment

<jats:p>An important paradigm in this fast-growing global environment is sustainability. However, the high degree of uncertainty leads to many obstacles, which further expose the business to VUCA, i.e., volatility, uncertainty, complexity, ambiguity (Fridgeirsson &lt;i&gt;et al&lt;/i&gt;., 2021). Therefore, there is a dire necessity for implementing an effective and comprehensive approach to examining and managing risk. The present study is a conceptual approach that describes the role of leaders in managing risk in an unpredictable environment. The study describes the strategies that will be helpful in mitigating business risk. Further, it reveals that a risk management system will help in providing necessary information on the overall risk faced by businesses so as to reduce complexity and ensure business success in the long run (Kuznik, 2016). The present paper is an attempt to examine various alternatives for the detection, prevention, and reduction of future risk. The paper will be helpful for decision makers in formulating such effective policies, which will help sustain the business and ensure its survival in the long run. The study provides a conceptual map that will contribute to empirical research and be helpful to management and leaders in dealing with a turbulent scenario.&amp;nbsp;</jats:p>